@maura throwing out ballpark figures below for you but think you should speak to
@Steven Barrett or
@LDFerguson who I think are the pros on here to make sure I am not leading you astray (because hand's up, I dont know, what I dont know....and I dont claim to be an expert and everybody circumstances are different)
Let's say your 49.....you will retire from your SNA role at 66......this means you will have 17 years service upon retirement.
Top of the SNA scales looks like €42,190 from what I can tell.......an SNA colleague with 40 years service is entitled to receive in CASH and TAX FREE €63,285 when they retire (1.5 x €42,190).
You will only have 17 years service though....so will get a tax free lump sum prorated of ~€26,896 because you only have 17 years completed.....
HOWEVER and this is a big however.......
You have scope to make additional voluntary contributions (AVC PRSA) that will allow you to collect a tax free sum lump equal to your SNA colleague with 40 years service even though you only have 17 at retirement......I calculate your scope to create a self funded AVC PRSA tax free lump sum @ ~€36,388.
I also note from the SNA scale - that the long service increment bringing an SNA to €42,190 occurs after c.14 years.......this is important because based on current tax bands (& assuming you might be single) you will be a marginal 40% tax payer on your last € of income in 14 years time on €42k....meaning any AVC contributions will attract 40% tax relief going into your AVC because you will be a top rate tax payer then.......exactly when this occurs you will be over 60 and therefore entitled to also contribute up to 40% of your annual gross income into a PRSA AVC scheme.
Without knowing anything more and my hot take.......but please speak to the two guys I've directed you too to get a more holistic and well rounded picture of what makes sense:
But at a MINIMUM.....once you become a 40% marginal tax payer in 14 years time.....aggressively contribute into your PRSA AVC such that you max out your available tax free lump sum threshold of €63k.......in the meantime nothing is stopping you from saving and investing some portion of your income TODAY such that large contributions to your AVC PRSA in 14 years are funded from this pool of cash/investments and are less of a strain on your household budget at that time.....as I've said in 14 years time, you will be able to contribute c.€16,876 per anumm based on your age and gross salary at that time and receive 40% tax relief back on that contribution (€6,750).......that money will then exit your AVC in THREE short years completely tax free!
All told I think there is €14,555 of 'free' Paschal Donohue money sitting there for you if you plan correctly.
Its a no brainer and you should start a financial plan NOW to avail of the opportunity by speaking to
@LDFerguson and
@Steven Barrett