Charlie1962
New Member
- Messages
- 4
Hello,
I'd really welcome your inputs, I'll do my best to be as concise and informative as possible.
I've asked 2 Questions below based on my story. I believe I will need a financial advisor for their expertise. I see some good independent advisors recommended in other posts but first I would like to gather some inputs to at least form a high level view as I'm confused.
Personal Details.
* I'm 61 and will be 62 in June 2024. Currently am employed in Industry.
* Over my working life I've accumulated 2 pension pots with different employers and i've just joined the pension fund with my current employer (a bit late perhaps but details below).
* I plan to retire when 65, worst case 66 so only 3-4 working years remaining.
* My Salary = €81K / Spouse = €30K
* Mortgage paid and kids educated.
* Spouse and myself both have the required amount of PRSI Credits for the state pension at 66 and hopefully will provide ~ €1K each per month.
* The previous company I worked for folded in 2013 and my main pension policy resides with AVIVA (so no contributions into this since 2013).
AVIVA Policy Type: Unit Linked DC Pension
Transfer Fund Value €473K with a Nominal Fund Value: €634K
* Also have a 2nd Buy-out Bond worth €100K
* No loans.
* No investment property.
Note: the AVIVA policy (€634K Nom Value) matured on my 60th Birthday (June 2022) so the fund just sits with AVIVA, with zero investment/growth for the last 1.75 yrs. I only discovered this when I contacted AVIVA early in Jan to request the fund value and they informed me the policy matured on my 60th Birthday.
Question 1: Any advice in relation to (a) and (b) below as decisions will need to be made ?
* AVIVA informed me that the Nominal Fund Value €634K will apply to both (a) and (b) below so I will need to decide what to do.
(a) If I "retire the AVIVA Pension Benefit" now (ie take the 25% TF lump sum + Annuity or ARF), I guess the Annuity or ARF amount taken each year will be Taxed at (40%) while i continue to work and receive salary for the next 3 years before retirement.
I'd really prefer to avoid having to go this route until I retire @ 65, unless it's the best option from a bad lot.
(b) If I transfer the AVIVA pension benefit out to another scheme (defer the retirement)... perhaps into a buy-out-bond to grow for the next 3 years, or move into my current Mercer Pension Scheme with my existing employer (which I just joined) or is there something else that you can suggest ?
Please note, I'm still waiting for AVIVA to provide my Retirement Options which I've been told I'll receive shortly (they are painfully slow to respond to email).
Question 2:
* With my current employer, I've just joined their Pension with Mercer [Aspire Retirement Strategy (Annuity)]. Perhaps a bit late with only ~3-4 years remaining before retirement at 65. I'm expecting little or no growth (maybe negative depending on my entry point onto the performance curve), but still attractive benefits exist such as tax saving of 40% on my 8% contribution + the benefit of the 8% company contribution. If I continue with this, "contributions made" in June 2027 = €43K.
TBH, I'm only contributing 8% to acquire the 8% company contribution.
My question is, would you suggest increasing AVCs ?
Personally, I don't think I should tie up more cash which ultimately will get locked into an ARF/Annuity (after TFL @ 25%). I'd hope the AVIVA pension pot will be adequate + state pension + some savings (and inheritances) but i'm really open to advice.
Thanks in advance to all.
I'd really welcome your inputs, I'll do my best to be as concise and informative as possible.
I've asked 2 Questions below based on my story. I believe I will need a financial advisor for their expertise. I see some good independent advisors recommended in other posts but first I would like to gather some inputs to at least form a high level view as I'm confused.
Personal Details.
* I'm 61 and will be 62 in June 2024. Currently am employed in Industry.
* Over my working life I've accumulated 2 pension pots with different employers and i've just joined the pension fund with my current employer (a bit late perhaps but details below).
* I plan to retire when 65, worst case 66 so only 3-4 working years remaining.
* My Salary = €81K / Spouse = €30K
* Mortgage paid and kids educated.
* Spouse and myself both have the required amount of PRSI Credits for the state pension at 66 and hopefully will provide ~ €1K each per month.
* The previous company I worked for folded in 2013 and my main pension policy resides with AVIVA (so no contributions into this since 2013).
AVIVA Policy Type: Unit Linked DC Pension
Transfer Fund Value €473K with a Nominal Fund Value: €634K
* Also have a 2nd Buy-out Bond worth €100K
* No loans.
* No investment property.
Note: the AVIVA policy (€634K Nom Value) matured on my 60th Birthday (June 2022) so the fund just sits with AVIVA, with zero investment/growth for the last 1.75 yrs. I only discovered this when I contacted AVIVA early in Jan to request the fund value and they informed me the policy matured on my 60th Birthday.
Question 1: Any advice in relation to (a) and (b) below as decisions will need to be made ?
* AVIVA informed me that the Nominal Fund Value €634K will apply to both (a) and (b) below so I will need to decide what to do.
(a) If I "retire the AVIVA Pension Benefit" now (ie take the 25% TF lump sum + Annuity or ARF), I guess the Annuity or ARF amount taken each year will be Taxed at (40%) while i continue to work and receive salary for the next 3 years before retirement.
I'd really prefer to avoid having to go this route until I retire @ 65, unless it's the best option from a bad lot.
(b) If I transfer the AVIVA pension benefit out to another scheme (defer the retirement)... perhaps into a buy-out-bond to grow for the next 3 years, or move into my current Mercer Pension Scheme with my existing employer (which I just joined) or is there something else that you can suggest ?
Please note, I'm still waiting for AVIVA to provide my Retirement Options which I've been told I'll receive shortly (they are painfully slow to respond to email).
Question 2:
* With my current employer, I've just joined their Pension with Mercer [Aspire Retirement Strategy (Annuity)]. Perhaps a bit late with only ~3-4 years remaining before retirement at 65. I'm expecting little or no growth (maybe negative depending on my entry point onto the performance curve), but still attractive benefits exist such as tax saving of 40% on my 8% contribution + the benefit of the 8% company contribution. If I continue with this, "contributions made" in June 2027 = €43K.
TBH, I'm only contributing 8% to acquire the 8% company contribution.
My question is, would you suggest increasing AVCs ?
Personally, I don't think I should tie up more cash which ultimately will get locked into an ARF/Annuity (after TFL @ 25%). I'd hope the AVIVA pension pot will be adequate + state pension + some savings (and inheritances) but i'm really open to advice.
Thanks in advance to all.