Frank Grimes
Registered User
- Messages
- 27
I done a search but am none the wiser. My employer has a DB pension where the calculated outcome will be a pension of 2/3rds of final salary less 1.5 times the current State Pension. This value is determined as €24k p.a. Hope that makes sense.
My employer contributes €2400 p.a. and I have €1200 p.a. deducted from my salary. There is an option to make AVC's to a DC pension. I intend from this year to contribute €1200 p.a. to this.
From what I have read on here, it is not always in my interest to make an AVC when having a DB pension due to there being an absolute limit of the pension being 2/3rds of final salary? How do I determine whether or not it is an effective use of my income?
I am 35. I finally began to organise my finances this year. Using Personal Finance for Dummies(USA) as a template: I created an Emergency fund and started some Investment Savings (Lowish cost Mutual Fund). However the book is heavily biased towards maximising retirement investment. Hence my confusion, should I be contributing more to an AVC?
I should add that my main interest in AVC's was due to the introduction of quarterly performance bonuses this year, potentially producing an unexpected income of ~€500 per quarter before tax. The plan would be to direct this income to the AVC also.
My employer contributes €2400 p.a. and I have €1200 p.a. deducted from my salary. There is an option to make AVC's to a DC pension. I intend from this year to contribute €1200 p.a. to this.
From what I have read on here, it is not always in my interest to make an AVC when having a DB pension due to there being an absolute limit of the pension being 2/3rds of final salary? How do I determine whether or not it is an effective use of my income?
I am 35. I finally began to organise my finances this year. Using Personal Finance for Dummies(USA) as a template: I created an Emergency fund and started some Investment Savings (Lowish cost Mutual Fund). However the book is heavily biased towards maximising retirement investment. Hence my confusion, should I be contributing more to an AVC?
I should add that my main interest in AVC's was due to the introduction of quarterly performance bonuses this year, potentially producing an unexpected income of ~€500 per quarter before tax. The plan would be to direct this income to the AVC also.