sector_000
Registered User
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Current age = 48. Retirement age from Public Sector job = 65.
I have found out from my pension dept that if I choose to make an extra once-off payment (prior to age 49) to buy some fraction of years of service.... for €10,000, I can buy:
Additional Pension of €357 per annum
Lump Sum €1,493
I know I'd get 41% tax relief, but still, how on earth is that value for money?
By the way, I can only realistically assume 0% salary increases till retirement.
My point is that if I was in my old private sector job and did a €10K AVC, I'd expect it to compound at a modest 4% over next 17 years to yield a pot of €19.5K which if rolled into an ARF ought to be allow a 4% draw down (plus adjustment for inflation) pretty much for 30 years producing a yield of €779 per anum.
Am I missing some obvious gem in this public sector DB pension??
I have found out from my pension dept that if I choose to make an extra once-off payment (prior to age 49) to buy some fraction of years of service.... for €10,000, I can buy:
Additional Pension of €357 per annum
Lump Sum €1,493
I know I'd get 41% tax relief, but still, how on earth is that value for money?
By the way, I can only realistically assume 0% salary increases till retirement.
My point is that if I was in my old private sector job and did a €10K AVC, I'd expect it to compound at a modest 4% over next 17 years to yield a pot of €19.5K which if rolled into an ARF ought to be allow a 4% draw down (plus adjustment for inflation) pretty much for 30 years producing a yield of €779 per anum.
Am I missing some obvious gem in this public sector DB pension??