Lump Sum Contributions

[Eggball]

As things stand now, I'm fully up to date with my PRSI (ie, 48 weeks per year average contributions) so if things keep going as they are, I'll qualify for full state pension at sixty-five (providing the country doesn't finally collapse in the meantime). In addition I'm paying into an occupational pension scheme where I work (semi-state) and another hefty chunk is going into an AVC with Irish Life as well. All things being equal, I should - in theory, anyway - be on for a comfortable retirement. With markets as low as they are at the moment, does the board think it worthwhile making a lump sum contribution of about 10,000 euro to the AVC, or would I be taking a blind gamble? I'm 45 years old.

 

[PJM]

Irish Life has all type of pension funds depending on your risk profile.

There should be zero risk involved in the AVC if you invest in the right type of fund (i.e. not an equity fund).

And you're immediately 'up' by the amount of tax saved plus the tax free investment growth.

But the key thing to watch out for is annual charges. Irish Life might not be the best choice - especially for a conservative cash based pension.