Moneymakeover AVCs or not?

I checked my wife's pension after reading this thread and realized she can't access her AVC pot separately from drawing down her DB pot.

Would it usually be possible to transfer her AVC pot to a separate PRSA?
 
Is it true you can work in the public sector with an Avc, switch to private sector firm one year before retirement, transfer public sector Avc to private sector Avc, retire with your total Avcs/private pension and ask public sector pension separately at a later period?
@ClubMan
 
@Fortune thanks for your reply Quinton
So it seems in an ideal career it's better to have time in both private/public to allow you to access different buckets (and associated Avcs) at different times
 
Interesting thread. I presume those on a pre 2013 public service pension, that take Cost Neutral Early Retirement at age 55, can access their AVC then?
 
Fibbernacci said:
I guess we could start a new PRSA thats not linked and only contribute there going forward?
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I think that you can but then you can't get tax relief on contributions to it from the relevant public service earnings. That's only possible with an AVC PRSA as far as I know and then you're back to the "linkage" issue between the AVC PRSA and the main scheme.
 
hilhid said:
Edit: your biggest concern is probably hitting the standard fund threshold. Adding AVCs to salary increases could easily get you there, even with the cap rising over the next decade. This may well push you towards early retirement
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This is the part I'm struggling with, I have a job that I like and find easy/not very demanding.
I don't see myself quitting it or retiring for many years so I'm worried my avc money will be
  1. Locked away: the marginal utility of the money will go way down to me by the time I'm retired and I will miss out on investment opportunities in the intervening decades.
  2. Rules will change for those with generous assets as the pension system becomes more costly
  3. That even if the rules stay consistent they might force me into early retirement.
 
Grubber2000 said:
This is the part I'm struggling with, I have a job that I like and find easy/not very demanding.
I don't see myself quitting it or retiring for many years so I'm worried my avc money will be
  1. Locked away: the marginal utility of the money will go way down to me by the time I'm retired and I will miss out on investment opportunities in the intervening decades.
  2. Rules will change for those with generous assets as the pension system becomes more costly
  3. That even if the rules stay consistent they might force me into early retirement.
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agree AVCs look pretty marginal. if you like your job and expect to keep working, then imo you don't need more retirement money than you already have, especially if your wife plans to go back to work

why not open bare trust accounts for the kids and get tax-free (or almost free) growth that way (since they will have no other income)? you could be putting 24k (4*3000*2) a year into a tax-sheltered set up and building capital for them to use for college etc once they turn 18 edit: almost tax-free isn't possible, sadly, unless the grandparent is the one funding the account. rule called s.795. each child's CGT allowance is going to be doing a lot of work for many year, though
 
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Fortune said:
How do you get tax free growth?
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*almost tax-free

by using bare trusts to get an annual CGT allowance for each child. this protects growth for several years of adding 6k per year to each child's account, and keeps effective rate low for years after that. you do have to sell and rebuy every year to get this benefit, so it's pretty tedious

I had thought (the reason for my edit above) that income-producing assets in bare trust would generate income for child, and that as child has no other income, rates would be low, but it seems Revenue is wise to this. income from assets in trust is taxed as though it was parents' income. unless, it seems, the money in trust came from grandparents. then income is child's income. then you could invest in income-generating assets with v low rates in child's for the long run

(hopefully obviously, but for sake of clarity, I am a total amateur and this is all just based on my own understanding)
 
hilhid said:
by using bare trusts to get an annual CGT allowance
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Annual CGT allowance is only €1,270 and only applies when selling assets at a gain.

Did you mean the annual Capital Acquisitions Tax/Gift Tax Small Gift Exemption of €3K?

Small Gift Exemption

Exemption from CAT on small gifts
www.revenue.ie www.revenue.ie
That has no bearing on the taxation of investment gains.
 
ClubMan said:
Did you mean the annual Capital Acquisitions Tax/Gift Tax Small Gift Exemption of €3K?
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No. That's how you get the money to the children without eating into their CAT allowance

Once that money (6k a year per child, more if grandparents are involved) is invested, gains of 1270 per year per child can be harvested with zero tax
 
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