D
durhamjohn
Guest
I am currently aged 50, married, working in the public sector and by the time of my retirement at age 65, I will have 22 years pensionable service along with 8 years purchased service, giving a total service of 30 years. My current earnings are €80,000. I contribute 6.5% to state occupational pension scheme; 10% to buy additional years and I hope to use an AVC fund which I’m currently contributing to, to obtain the maximum lump sum fund equivalent of 1 ½ years service i.e. €120,000. My current AVC fund value is €49k and I expect at retirement, this to be worth on the basis of continuing contributions to be in excess of €160k (in present value terms)
I also have a retirement bond invested in Friends First - With Profit Fund (current value €150k) from my private sector employment in which I have an entitlement to a tax free lump sum (approx €49k) at age 50.
On retirement, at age 65, I will have hopefully have an entitlement to an Social Welfare OAP pension based on 15 years continuous A1 PRSI contributions before joining the public sector as a D1 contributor.
Questions:
1.        Is there any revenue restriction in my obtaining two tax free lump sums (one from the public sector and the other from the private sector) or are they amalgamated as one?
2.        My retirement bond with Friends First also covers me for €300k life cover (4 times salary). Is it possible to defer drawing on the bond i.e. having perpetual life cover and borrowing against this bond. The thought being of having an interest only loan and non encashment of bond. If I die, the death tax free sum can pay the loan?
3.        My retirement bond with Friends First allows me to use the retirement option at age 50. In taking a tax free lump sum of €49,000, what affect does this have on terminal fund value?
4.        On my With Profits Bond (with Friends First), I can transfer the AVC portion to an AMRF fund. Will this penalise the terminal value on my fund? What are your views on leaving my monies within With Profit Funds which now seems to be performing poorly?
5.        I would appreciate any other advice/strategies.
Thanking you
I also have a retirement bond invested in Friends First - With Profit Fund (current value €150k) from my private sector employment in which I have an entitlement to a tax free lump sum (approx €49k) at age 50.
On retirement, at age 65, I will have hopefully have an entitlement to an Social Welfare OAP pension based on 15 years continuous A1 PRSI contributions before joining the public sector as a D1 contributor.
Questions:
1.        Is there any revenue restriction in my obtaining two tax free lump sums (one from the public sector and the other from the private sector) or are they amalgamated as one?
2.        My retirement bond with Friends First also covers me for €300k life cover (4 times salary). Is it possible to defer drawing on the bond i.e. having perpetual life cover and borrowing against this bond. The thought being of having an interest only loan and non encashment of bond. If I die, the death tax free sum can pay the loan?
3.        My retirement bond with Friends First allows me to use the retirement option at age 50. In taking a tax free lump sum of €49,000, what affect does this have on terminal fund value?
4.        On my With Profits Bond (with Friends First), I can transfer the AVC portion to an AMRF fund. Will this penalise the terminal value on my fund? What are your views on leaving my monies within With Profit Funds which now seems to be performing poorly?
5.        I would appreciate any other advice/strategies.
Thanking you