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Are AVCs the only option to supplement a public service pension?

  • 12-08-2015 3:18pm
    #1
    Ms bean counter
    Registered Users Posts: 11 ✭


    I'm a bit of a noob when it comes to pensions/investments but I have been doing a lot of research lately and have a question?

    I have read a good bit on Bogleheads & reddit personalfinance and I'm trying to plan our long term goals. I currently work for the government and am in the pension scheme. I am 35 years old and currently the main earner in our family. I am looking to increase my pension payments. I was reading about investing in the low fees/ index /passive funds as a way to do this. According to my PRD60 2014 my pension related deductions are only 7.5% of my gross income so there is scope to increase pension payments tax efficiently.

    I believe I can do this with a PRSA. However, as a public servant am I limited to only contributing to AVC's in order to take advantage of the tax benefits? I know some companies offer PRSA AVC's but this still seems quite limited to paying into managed funds.

    Is there a way I can manage my own investments for my retirement or do I have to just accept the ridiculous charges and suck it up in order to increase my pension pot?

    According to my contract my minimum retirement age is 65. Will I have to wait until this age to access any other pension schemes I have paid into in the meantime?


Comments

  • #2
    mbradso2003
    Closed Accounts Posts: 261 ✭✭mbradso2003


    You could also make notional service contributions, these add years to your current service. The attract tax relief in the same AVCs do.

    Notional service provides more of a guarantee than AVCs but that's not to say they will provide higher benefit.

    Have u spoke to pensions office or management unit?


  • #3
    mbradso2003
    Closed Accounts Posts: 261 ✭✭mbradso2003


    There is no real difference between AVC and AVC/PRSA except charges. Either may offer lifestyle strategy which chose investment funds and derisk as you get older.


  • #4
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,814 ✭✭✭The J Stands for Jay


    You can have a PRSA AVC. Some providers offer self directed investments on their PRSA AVCs.


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