Thank you for the information S class. Financial advisor suggested waiting until next year to drawdown ARF to avoid 40% tax. I will look at the figures again.
Firstly you should check out your Prsi record. What you want to find out is how many reckonable paid contributions you currently have.
If there is any possibility that you could reach 520 paid contributions before age 70, you should persue this target.
If there is this possibility, would the extra 52 class S be essential to reach the target ?
If the 520 before age 70 is impossible also check if the extra year of class S would allow you to reach a target of 260 paid contributions earlier before age 70.
The extra 52 class S will get you to your 260 target 12 months earlier.
This will allow you to claim your pension 12 months earlier.
The moment you reach either target is the time you can claim your pension.
This gives you one extra year of pension payments.
Remember that although you will pay 40% tax on the immediate ARF, this only represents a loss of 20%, as ultimately you will be liable to 20% tax on that drawdown.
Don't follow the advisor's advice unless either target is reachable by age 66 without the extra year of class S.
If you are not starting your ARF until 2025, you would gain two extra years of change of status credits by getting 1 class A paid contribution before the end of 2024.
Employment for 3 hours at basic pay rate is all that is needed to gain 1 class A stamp.