avc notional service purchase

R

redmagic

Guest
hi all,
i'm a 29 year old teacher with an avc scheme. i havent taken a career break or anything like that and have the avc set up to retire at 55 with all my pension benifits. could i avail of the notional purchase scheme to buy back the years instead? just looking for an unbiased opinion before i contact corn market.
 
redmagic,
if you want to retire at 55 you cannot avail of the notional purchase scheme. you can only do these if you are retiring at 60 or 65. unfortunately the NSP locks you in to 60 or 65.
 
You could purchase notional services for services to 60. A combination of the two might be the best. You would get an actuarially reduced pension.

http://cspensions.gov.ie/modellers.asp

The site above should give you an approximate cost. Remember the Notional Service is guranteed. The AVC's would depend on the performance of funds etc... and you could not be sure of the yield that you would get when you retire. Also with the Notional Service you will get an additional lump sum based on the additional years.
 
Kildare123 said:
redmagic,
if you want to retire at 55 you cannot avail of the notional purchase scheme. you can only do these if you are retiring at 60 or 65.
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First time I have heard this, so what happens if you are buying NSP with a view to retiring at 60 and then due to unforseen circumstances you retire at 55, what happens the money?
 
nearly40 said:
First time I have heard this, so what happens if you are buying NSP with a view to retiring at 60 and then due to unforseen circumstances you retire at 55, what happens the money?
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You get notional service credit in proportion to the amount of your contracted payments that you made.
 
Say you contract to buy 2 yrs notional service to retire at 60. you started teaching at 22 yrs old. You then decide to go at 55. At this stage you have already paid for 1 of the 2 yrs you contracted to buy. Can you get that at 55 and can you purchase the second year at that stage and get full credit for the two myrs at 55?
 
what happens if you buy years to retire at 60 and when the time comes decide to stay on...........what happens, do you lose money
 
athens2004 said:
what happens if you buy years to retire at 60 and when the time comes decide to stay on...........what happens, do you lose money
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I queried this myself. I was told that if I stayed then the money would be refunded for the length of time I stayed. It might be different for you. Ring your pension people and confirm.
 
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