Paying AVCs

C

Cathbarr

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Just wondering if anyone can give me some tips. I work in the public sector and am in my late 30s. I've 14 years done and and started in 2008 so in the pre 2011 pension scheme. I'm looking into starting to pay AVCs to give me the option to retire at 58. From my research I would have to pay 36e a month net to build up my reserves. This should give me a fund to use at 58 to ensure there is no drop in income if I did chose to retire.

Some background information, we have 2 kids who (all things going well) should be finished college and financially independent by the time I turn 55. We hope to have our mortgage paid off in the next 5 years but realistically the excess money will be going towards paying for college for our kids.

Just wondering if you think AVCs would be a good way to go.
 
Broadly yes, seems like a good idea, assuming that your not carrying any other significant debt, like credit cards or car loans. The downside would be that the money is fairly well locked up until you retire, so you won't have any flexibility to use it for education costs or house upgrades or similar.

Keep a close eye on AVC fees to make sure these are competitive. Most PS unions have deals with AVC providers, but keep them honest by shopping around anyway.
 
I'm someone who'se retired from the public sector. I maximised my spare cash into pension after debt reduction.

with regard to pension, I prioritised buying added years through the NPP scheme as I had a shortfall of service. aftrr that I look to maximise my tax free lump sum so put enough into AVC to ensure that.

problem with getting advice from many AVC advisors, is tyhey're selling their own product. worth paying for independent professional advice.

looking back, I'm happy with my prioritisation, NPP first with enough of an AVC to ensure max tax free lump sum
 
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