Age:25
Salary: €50,000 approx
Joined service in 2016 age 21.
Just some background, I joined the civil service in 2016 and I'm now in a middle management role 4 years later. Over the last week or so I've been looking into the Single Public Service Pension Scheme (introduced in 2013).
It would appear my 'normal retirement age' is 68, this would be after a full 47 years service! If I were to retire at 61 (after the standard 40 years) I would come under 'cost neutral voluntary early retirement' doing so would result in a 23% reduction of my pension and a 2% reduction of my lump sum.
I was quite surprised to read this. I was aware of the new scheme being based on a percentage of career average as opposed to final 3 years etc..But I didn't know that 40 years service is no longer being counted as full service.
My question is, what is the best approach to make up this 23% shortfall in my pension if I retire age 61. Is it an AVC, possibly through Cornmarket? I believe an AVC would also be reduced by an actuarial amount should I retire early. Is there any other product for me?
I'm also aware it might be a cause for some of you to have a small laugh about a 25 year old being this concerned about a retirement event that is 35+ years away. But just 47 years seems a crazy length of time, and going after 40 under "voluntary" retirement might be more appetising! And I'd prefer to make use of some marginal tax relief on contributions now this early in my career, than regret not doing it when I'm 60 and thinking of retirement then.
I haven't been able to find much info online outside of cornmarket guides.. This could possibly be because it's an issue that hasn't arisen yet as everyone under the single scheme who will have 40 years service by retirement are probably all about my age and early in their career!
Really appreciate any help!
Salary: €50,000 approx
Joined service in 2016 age 21.
Just some background, I joined the civil service in 2016 and I'm now in a middle management role 4 years later. Over the last week or so I've been looking into the Single Public Service Pension Scheme (introduced in 2013).
It would appear my 'normal retirement age' is 68, this would be after a full 47 years service! If I were to retire at 61 (after the standard 40 years) I would come under 'cost neutral voluntary early retirement' doing so would result in a 23% reduction of my pension and a 2% reduction of my lump sum.
I was quite surprised to read this. I was aware of the new scheme being based on a percentage of career average as opposed to final 3 years etc..But I didn't know that 40 years service is no longer being counted as full service.
My question is, what is the best approach to make up this 23% shortfall in my pension if I retire age 61. Is it an AVC, possibly through Cornmarket? I believe an AVC would also be reduced by an actuarial amount should I retire early. Is there any other product for me?
I'm also aware it might be a cause for some of you to have a small laugh about a 25 year old being this concerned about a retirement event that is 35+ years away. But just 47 years seems a crazy length of time, and going after 40 under "voluntary" retirement might be more appetising! And I'd prefer to make use of some marginal tax relief on contributions now this early in my career, than regret not doing it when I'm 60 and thinking of retirement then.
I haven't been able to find much info online outside of cornmarket guides.. This could possibly be because it's an issue that hasn't arisen yet as everyone under the single scheme who will have 40 years service by retirement are probably all about my age and early in their career!
Really appreciate any help!