AVC's V's Notional Years

I work in the public sector and have just started purchasing AVC's but should I be purchasing notional years? What are notional years and why are they better?

Is it true you pay tax on your pension if you have AVCs as well as your pension?

Have you read this Key Post about the first part of your query?

Pensions are taxable whether they come from the superannuation scheme, extra years bought or AVCs, or even the State Contributory Pension if applicable. All your taxable income is added together to work out whether or not you fall into the tax net and if so, what the tax payable will be. Pensions are taxed the same as earned income - you just get extra tax credits and a higher tax exemption limit when you hit 65.

But there's no distinction on tax where the pension comes from.

Some of your pension benefits at retirement can be taken as a once-off lump, which is tax-free.

Thanks!

Have you spoken to anyone in Cornmarket Group they specialise in public sector financial benefits and if you are in a Union they will meet with you and advise you on any pension, superanuation queries you have. It might be worth giving them a call just to see what they advise, as far as I know they will meet you at your home and give a full financial review.

Have you spoken to anyone in Cornmarket Group they specialise in public sector financial benefits and if you are in a Union they will meet with you and advise you on any pension, superanuation queries you have. It might be worth giving them a call just to see what they advise, as far as I know they will meet you at your home and give a full financial review and give you details of cost of AVCs and NSPs.

Bear in mind that Cornmarket / Irish Life charges on AVCs are notoriously high.

Yes, you will get lots of advice, but you will pay for it indirectly.

Notional years tend to be cheaper, as the State is effectively subsidising your pension, and charging you below market rates for the added years.

All income is taxable, irrespective of the source. (pension, wages, rents, etc.)