NoTo jump on this, if the avc were ceased/paid up now and Sidzer began a seperate Avc not associated with her Public Service Pension could she transfer the now paid up funds in the existing AVC (I believe she would need to obtain a statement of comparability, I think it's called) to the new AVC and then do what she is contemplating above?
I have been in contact with the pension administrator. I think the pension was1/60 - it is a guinness pension.Would you recheck your €9K per annum calculation of your DB pension again. You were 30 roughly you started teaching and so were working in a pensionable job for max 9 years (allowing 3 years for teacher training).
If you are entitled to 1/80th per year you were earning approx €93K when you left that job? Or if you get 1/60th per year you were earning €73K when you left that job. Would that have been your salary back in 1991? Also most DB schemes penalise for early drawdown so check your scheme details to determine what the penalty is.
This seems extraordinarily generous for a pension scheme into which you only contributed for 6.5 years. Is it a per annum payment?the 9K is roughly what I will get age 57 - according to the figures I got from the pension administrator.
But the indexation is CPI subject to a max of 4%. For long periods over the last 30 years, CPI was less than 4%.2700 @4% compound interest x 30 years is €8946, which would bring it to 2024, which is more in the ballpark. However no allowance is made for pensionable salary versus actual salary. Pensionable salary is normally salary-old age pension. And there is usually a step back of about 3% per year for each year you retire before 65. Each pension scheme has very specific rules so you are better off checking these very carefully. Do you get advised each year on your deferred pension? There may be information in those statements.
I really do hope you get the €9K per year at 57, but it seems amazing to have left a job earning €25K in 1994 after working there for 6.5 years and receive a pension of €9K from the age of 57 from it.
There is a new pension administrator and I am going to get it clarified. It is worth approx 12k pa at age 65 and the 9k is a CNER rate.The figures do seem high. 6.5/60 x €25,000 = €2,700. But remember that deferred pensions are indexed at CPI from the date of leaving. Even still, your figures look excessive. Are you sure the €9,000 is not from age 65? If 65 is the Normal Retirement Age, then retiring at age 57 would reduce that figure significantly.
I started paying these at age 50 (4 yrs ago) at age 57.75 I will have 8 yrs purchased. I am approx 10 yrs short and If I worked until I am 60 then I would have a full pension - but by leaving at age 57.75 I will have appox 35.5 yearsAlso worth checking into your 8 years Notional Service Purchase.
If you are paying for these in your fortnightly payslip, the amount charged is likely based off an age 60 retirement. If you went at 57 you may have underpaid for these 8 years so any balance owing would probably be taken from your lump sum.
2700 @4% compound interest x 30 years is €8946, which would bring it to 2024, which is more in the ballpark. However no allowance is made for pensionable salary versus actual salary. Pensionable salary is normally salary-old age pension. And there is usually a step back of about 3% per year for each year you retire before 65. Each pension scheme has very specific rules so you are better off checking these very carefully. Do you get advised each year on your deferred pension? There may be information in those statements.
I really do hope you get the €9K per year at 57, but it seems amazing to have left a job earning €25K in 1994 after working there for 6.5 years and receive a pension of €9K from the age of 57 from it.
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