Advice on Single Service Purchase of Referable Amount/Lump Sum

world201812

Registered User
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71
Hi all,
I’ve previously posted and received excellent advice, but at a bit of a crossroads regarding the single service scheme.
Its very hard to get my head around the ‘benefits’ of this, and I’m in two minds as to whether or not I should do an PRSA-AVC this year as usual, get 40% back, or buy ‘referable’ amounts or towards a ‘lump sum’.
In my case the lump sum costs approx. 90% of the value, obviously I’d get 40% back of this approx. on tax return if I went for the option.
Then in terms of ‘referable amounts’ HR advise that ‘for every €1 you want to add to your annual Pension it will cost €22 approx’.
The latter looks insane cost wise.
Can someone explain what is the benefits of the lump sum v referable amount. The lump sum looks more attractive based on the above?
I’ve looked at my PRSA-AVC statement for 2020, and the value of this has risen, but as I read it, the value of the single service contributions as in lump sum or referable amounts, never rise?
Would I be as well to keeping adding to my PRSA-AVC and then at 60 odd years of age, fire it in to my public sector pension by way of buying lump sum or referable amounts?
 
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