Public Sector Single Scheme Vs Occupational Pension Scheme

[lledlledlled]

Yes, Given the cliche of the " gold plated pension" people are often surprised. PS pension benefits have been falling over the years, post 2004 and, again, with the Single Scheme.

Nevertheless, things aren't that bleak. You probably have been paying PRSI for several years already so you should qualify for a full State Pension which along with the 20k odd from the Occ Pension would amount to around 33k. Tax and USC deductions at this level are much lower and there is no PRSI so net take home does not reduce by as much as it might seem.
You might get a promotion or two along the way also to bring you onto a different payscale! Also you could easily top up your lump sum gratuity from AVCs along the way. Under current rules a final salary of 88k would allow a tax free lump sum of 132k which is not a bad nest egg. You could also fund further for an ARF if so inclined but don't forget to live first and pay the mortgage , etc.

Anyway, good luck with the decision!

Thanks for the advice. I must admit, i may have uttered the works 'gold plated pension' in relation to PS myself. Never again!

 

[NoRegretsCoyote]

Thanks for the advice. I must admit, i may have uttered the works 'gold plated pension' in relation to PS myself. Never again!

It is not so much 'gold plated' as 'predictable'. You have a reasonable expectation of what your retirement income is going to be. Obviously if economy does badly, PS pensions suffer, and vice versa, but there are limits to this.

The performance of your pension fund over 30 years has a much wider range of potential outcomes, even if the most likely expectation is the same as a PS one.

You also don't have to decide whether to take out an ARF and/or purchase an annuity.