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Public sector pension

  • 06-10-2017 7:16pm
    #1
    Indestructable
    Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭


    Hello all.

    Small query here. I am 25 and about to start with a local authority on a salary of 40k. I know little or nothing about pensions and already I have been approached by a private pension salesman saying I should start a second pension! Seemed a bit mad to me.

    Can anyone give me a very very rough idea of what pension I would get if I stick with the usual public sector pension for the next 45 odd years!

    Is there any benefit in taking out this second pension?

    Thanks


Comments

  • #2
    BaronVon
    Registered Users, Registered Users 2 Posts: 1,656 ✭✭✭BaronVon


    As you are post 2013, you will have a career average pension. Some info here

    It will be more than the State pension, but you'll have to calculate that for yourself, or join the union for their assistance.

    Said salesman was probably offering AVC pensions, which provide tax relief at source at 40%, so for every €6 you put in, you effectively get €10, and then it is invested in stocks and shares etc on your behalf, where it can also lose value.

    My advice would be to use any extra cash to pay off your mortgage, save for a mortgage first, before you start topping up a pension 43 years in advance!


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