Hi all,
Looking for some pension advice for a couple, double income, both late-ish (mid-30s) entrants to civil/public service, one of whom has UK state/NHS pension contributions, and one who worked in private sector.
Person A is employed full-time, post 2013 Public Service Pension Scheme (single scheme).
Person A has 75k in buy out bond/PRSA.
Person B is employed half-time, pre 2013 Public Service Pension Scheme, commenced 2006 in state employment.
Between mid-nineties and 2006 Person B worked in UK, and having bought back UK pension years, has 25 years of a UK state pension and intends to purchase additionally for as long as is possible/feasible.
In addition Person B has 5.5 years of NHS UK pension, it’s called 2005/2018 NHS Pension Scheme.
We are currently maxing out the AVC-PRSA options to avail of tax relief with AVC-PRSA contributions linked to our current civil/public service pension schemes.
Person B has just gone half time in the last 12 months, one working and will continue to work full-time.
For two people in early/mid-40’s, promised land would be possibility of retiring at 60 as both in public service roles where you might like to retire at 60, if financially feasible.
Aware too, that pensions are taxed, and it probably makes no sense to pay 40% tax on pensionable income when lower contributions could lead to 20% tax, 20/25 years from now.
Questions
Should Person B try to see if possible to buy NHS UK pension years?
Should both AVC annually to the max ongoing?
We are totally confused as to when the various pensions can be drawn down from, can anyone enlighten?
Single Scheme for Person A is 67?
Pre Single Scheme for Person B is 65?
UK state pension for Person B is 65?
NHS UK pension for Person B is 65??
Our understanding is AVCs-PRSA’s currently alive, the drawdown dates are aligned current civil/public service schemes, these can only be accessed when we retire?
We have received DSP contribution statements for each year, in once case back to 1994, and one case back to 2001.
What do we do with the DSP statements? I have no idea what they mean. Thanks.
There are gaps in years all over the place due to time in UK/time off with kids etc, can we plug the gaps? Is there any benefit to it?
We don’t want to be ‘over-pensioned’ from a 40% tax point of view either, but our circumstances are not typical for public servants, with shortage of years couple with time in private sector and UK.
Apologies for the essay above, but a steer would be good.
Looking for some pension advice for a couple, double income, both late-ish (mid-30s) entrants to civil/public service, one of whom has UK state/NHS pension contributions, and one who worked in private sector.
Person A is employed full-time, post 2013 Public Service Pension Scheme (single scheme).
Person A has 75k in buy out bond/PRSA.
Person B is employed half-time, pre 2013 Public Service Pension Scheme, commenced 2006 in state employment.
Between mid-nineties and 2006 Person B worked in UK, and having bought back UK pension years, has 25 years of a UK state pension and intends to purchase additionally for as long as is possible/feasible.
In addition Person B has 5.5 years of NHS UK pension, it’s called 2005/2018 NHS Pension Scheme.
We are currently maxing out the AVC-PRSA options to avail of tax relief with AVC-PRSA contributions linked to our current civil/public service pension schemes.
Person B has just gone half time in the last 12 months, one working and will continue to work full-time.
For two people in early/mid-40’s, promised land would be possibility of retiring at 60 as both in public service roles where you might like to retire at 60, if financially feasible.
Aware too, that pensions are taxed, and it probably makes no sense to pay 40% tax on pensionable income when lower contributions could lead to 20% tax, 20/25 years from now.
Questions
Should Person B try to see if possible to buy NHS UK pension years?
Should both AVC annually to the max ongoing?
We are totally confused as to when the various pensions can be drawn down from, can anyone enlighten?
Single Scheme for Person A is 67?
Pre Single Scheme for Person B is 65?
UK state pension for Person B is 65?
NHS UK pension for Person B is 65??
Our understanding is AVCs-PRSA’s currently alive, the drawdown dates are aligned current civil/public service schemes, these can only be accessed when we retire?
We have received DSP contribution statements for each year, in once case back to 1994, and one case back to 2001.
What do we do with the DSP statements? I have no idea what they mean. Thanks.
There are gaps in years all over the place due to time in UK/time off with kids etc, can we plug the gaps? Is there any benefit to it?
We don’t want to be ‘over-pensioned’ from a 40% tax point of view either, but our circumstances are not typical for public servants, with shortage of years couple with time in private sector and UK.
Apologies for the essay above, but a steer would be good.