I'm a bit confused because I've got some conflicting retirement planning advice. As a secondary teacher, I'm public service. I'm very close to retirement, most likely one more school year to go. Because I've stayed on in the job longer than I thought I would [over 60 now]and I'm buying back 10 years in Notional Service, I'll will have close to the maximum service, probably something like 38.5 years. I have a small sum in an AVC/PRSA from Zurich that I stopped last year and will be able to use some of that tax free to top up my lump sum, but there will be a sum left over. I have reached that lucky stage in life where I don't need all my income so I always have a lot of money left over in my current account, plus some savings. Today I had a free consultation with a Cornmarket rep who was really pushing me towards starting another AVC, plus a backdated one for last year by lump sum, with a view to transferring it into an ARF on retirement. Last year I got impartial money advice and was told to stop the Zurich AVC and not to take out another one, that drawing from and investing savings and some of my lump sum would be a better way to boost income post retirement. The logic was that the charges associated with AVCs don't make them so cost effective.
Two conflicting viewpoints and I'm caught in the middle. I don't think I'd bother with a backdated lump sum AVC as I'd pay an additional 4% on that to Irish Life, but I'm tempted to start a new pay slip AVC because it seems a more cost efficient way to save money rather than have it sitting in the current account. I would get 40% tax relief on contributions, transfer to an ARF on retirement from where I'd pay 20% on whatever amounts I'd draw out. I'm aware that Cornmarket charge almost €600 to set up the AVC but that too is tax deductible. Sounds an ok deal where I would gain more than I'd lose, but am I missing something?
Really not sure what to do, Cornmarket obviously have a vested interest in their "free" financial advice and the rep was pushing me to invest big amounts in the AVC about which I'm skeptical. So any impartial suggestions would be most appreciated. Thanks a lot.
Two conflicting viewpoints and I'm caught in the middle. I don't think I'd bother with a backdated lump sum AVC as I'd pay an additional 4% on that to Irish Life, but I'm tempted to start a new pay slip AVC because it seems a more cost efficient way to save money rather than have it sitting in the current account. I would get 40% tax relief on contributions, transfer to an ARF on retirement from where I'd pay 20% on whatever amounts I'd draw out. I'm aware that Cornmarket charge almost €600 to set up the AVC but that too is tax deductible. Sounds an ok deal where I would gain more than I'd lose, but am I missing something?
Really not sure what to do, Cornmarket obviously have a vested interest in their "free" financial advice and the rep was pushing me to invest big amounts in the AVC about which I'm skeptical. So any impartial suggestions would be most appreciated. Thanks a lot.