Pre 1995 Public servant . PRSI Class D Single . Home owner . Mortgage paid off . Have 38 years service . Age 57. Current salary 65k .
About 25 years ago I toyed with the idea of taking a career break and in preparation for the pension shortfall I started a PRSA . Career changed course for the better and I never took the career break so have no break in service . Continued to pay into AVC and fund growth was very good.
My questions are ;
If I continue to work for the next 2 and a half years ( accumulating full service ) and continue to pay into AVC will I risk running into a situation where the proceeds of the ARF will simply be taxed at 52 per cent ?
Should I stop paying into AVC immediately ?
Can I retire early and use the AVC funds built up as my only income until I qualify for public service pension ?
About 25 years ago I toyed with the idea of taking a career break and in preparation for the pension shortfall I started a PRSA . Career changed course for the better and I never took the career break so have no break in service . Continued to pay into AVC and fund growth was very good.
My questions are ;
If I continue to work for the next 2 and a half years ( accumulating full service ) and continue to pay into AVC will I risk running into a situation where the proceeds of the ARF will simply be taxed at 52 per cent ?
Should I stop paying into AVC immediately ?
Can I retire early and use the AVC funds built up as my only income until I qualify for public service pension ?