M
Moon
Guest
Civil Servant and A.V.C. Pension Plan should i sign up or not ???
See quote I received below
Received following quote from a broker on behalf of New Ireland Assurance last October 2005. I am thinking of joining into an AVC pension plan and from qoute below would have to pay
Net Per 2 weeks Cost €38.74 (weekly cost 19.37)
Am I better to hold off on this paln for the moment for I have reason to believe the Government are planning on making pension compulsory in some form or other.
Recommended contribution assumes an investment return of 8% pa
Joined civil service March 1996 (age 26) paying PRSI Class A1
Date of Birth 26/11/1969 Age next birthday 36 (actually now am 36)
Proposed Retirement Age 65
Total reckonable service 39
Current gross basic salary €34,673
Current gross basic wage €1,329 per fortnight
Net Pensionable Salary €16,057
Net Pensionable Wage €615.46 per fortnight
Exsisting Retirement Benefits Employer and Social Welfare
Projected Pension (39)/80 x net pensionable wage = €300 per fortnight
Contributory Old Age Pension €358 per fortnight
Total €658 per fortnight
Projected Gratuity; 3 x (39/80) Gross Basic Salary = €50,709 Tax Free
Maximum Allowable Benefits as Defined by Revenue
Pension 2/3 x Gross Wage = €886 per fortnight
Contributory Old age Pension = €358 per fortnight
Total €1244 per fortnight
Gratuity 120/80 x Gross Basic Salary = €52,009 Tax Free
ShortFall
Pension (€1,244 less €658) = €586 per fortnight x 26wks x 16 (Av life expt)
= €243,776 less €50,709
= €193,067
Gratuity (€52,009 less €50,709) = €1,300 (tax free lump sum)
Fund Provided = €194,367
Recommended Gross Per 2 weeks contribution
% of salary
.056 €74.50
Less tax relief @42% €31.29
Less PRSI Relief 6% €4.47
Net Per 2 weeks Cost €38.74 (weekly cost 19.37)
Overall net Contribution €38.74 x 26.09 x 29 years left = €29,311
Look forward to replies
See quote I received below
Received following quote from a broker on behalf of New Ireland Assurance last October 2005. I am thinking of joining into an AVC pension plan and from qoute below would have to pay
Net Per 2 weeks Cost €38.74 (weekly cost 19.37)
Am I better to hold off on this paln for the moment for I have reason to believe the Government are planning on making pension compulsory in some form or other.
Recommended contribution assumes an investment return of 8% pa
Joined civil service March 1996 (age 26) paying PRSI Class A1
Date of Birth 26/11/1969 Age next birthday 36 (actually now am 36)
Proposed Retirement Age 65
Total reckonable service 39
Current gross basic salary €34,673
Current gross basic wage €1,329 per fortnight
Net Pensionable Salary €16,057
Net Pensionable Wage €615.46 per fortnight
Exsisting Retirement Benefits Employer and Social Welfare
Projected Pension (39)/80 x net pensionable wage = €300 per fortnight
Contributory Old Age Pension €358 per fortnight
Total €658 per fortnight
Projected Gratuity; 3 x (39/80) Gross Basic Salary = €50,709 Tax Free
Maximum Allowable Benefits as Defined by Revenue
Pension 2/3 x Gross Wage = €886 per fortnight
Contributory Old age Pension = €358 per fortnight
Total €1244 per fortnight
Gratuity 120/80 x Gross Basic Salary = €52,009 Tax Free
ShortFall
Pension (€1,244 less €658) = €586 per fortnight x 26wks x 16 (Av life expt)
= €243,776 less €50,709
= €193,067
Gratuity (€52,009 less €50,709) = €1,300 (tax free lump sum)
Fund Provided = €194,367
Recommended Gross Per 2 weeks contribution
% of salary
.056 €74.50
Less tax relief @42% €31.29
Less PRSI Relief 6% €4.47
Net Per 2 weeks Cost €38.74 (weekly cost 19.37)
Overall net Contribution €38.74 x 26.09 x 29 years left = €29,311
Look forward to replies