Hello All,
I am looking for some advice on AVC's.
I am a member of a public sector pension scheme and was considering taking out a PRSA AVC to allow the possibility of early retirement maybe at age 55. I have been talking to the union sponsored schemes (very high charges) and also to independent PRSA providers and getting some conflicting advice.
I am currently 43 but have 26 years service and would potentially have 40 years at age 57. Am I correct in my assumption that the total benefits one can take from all sources is 1.5 times final salary for lump sum and 50% of final salary for a pension. One firm tells me that at retirement you can fund any shortfall in your lump sum from your AVC's and put the rest in an ARF which you can draw down in any manner you decide. I am wondering if this is true and what the situation would be if I subsequently did not decide to take early retirement ie. In what way can I use the AVC fund. Basically the advice I am getting from this person is that I should pay as much as I can up to the allowable limit of 25% and avail of the tax relief and then on retirement put the funds in an ARF.
I am just wondering if things are so simple.
I am looking for some advice on AVC's.
I am a member of a public sector pension scheme and was considering taking out a PRSA AVC to allow the possibility of early retirement maybe at age 55. I have been talking to the union sponsored schemes (very high charges) and also to independent PRSA providers and getting some conflicting advice.
I am currently 43 but have 26 years service and would potentially have 40 years at age 57. Am I correct in my assumption that the total benefits one can take from all sources is 1.5 times final salary for lump sum and 50% of final salary for a pension. One firm tells me that at retirement you can fund any shortfall in your lump sum from your AVC's and put the rest in an ARF which you can draw down in any manner you decide. I am wondering if this is true and what the situation would be if I subsequently did not decide to take early retirement ie. In what way can I use the AVC fund. Basically the advice I am getting from this person is that I should pay as much as I can up to the allowable limit of 25% and avail of the tax relief and then on retirement put the funds in an ARF.
I am just wondering if things are so simple.