I have found it extremely difficult to find info on buying back years.
Superannuation Handbook Non-Established (prod-cs-pensions-assets.s3.amazonaws.com)Ask for the quote on cost from the main scheme administrators. It may take some time to get it. You could set up a PRSA AVC while you're waiting, if time is an issue. You can always stop paying it.
When you get the quote you might need someone to analyse it and compare it to what a PRSA AVC would buy you for the same level of contribution. If the PRSA AVC has a 5% contribution charge and/or a 1.5% AMC then my best guess is that added years would win if the assumed gross growth rate was circa 6% on the PRSA fund. Removing both 5% contribution charge and the additional 0.5% AMC is the equivalent of a total annual cost saving of circa 1% pa (over 20 years) and I'd say it's a toss up between the two as to which might be 'better'.
If you want to buy certainty then buying back years is probably the way to go.
If you want flexibility, are not risk averse and control charges, then the outcome is probably different. You might also hit a period at normal retirement age when annuity rates are good so you could always buy certainty at that time.
This is a very generic post. Until such time as someone would actually see the cost of buying back the added years and then do an analysis it would be very difficult to establish if either is better value.
Gerard
www.prsa.ie
100%.Yet they endorse Cornmarket’s ludicrously high fees and the complete spoof that their products are the only ones which can deliver the benefit of regular tax relief through payroll.
For primary teachers at least, Cornmarket is the only option for salary deduction to AVCs. Any other option means claiming tax back for themselves and many are reluctant or wary of Revenue (unnecessarily I must add as I've always found Revenue are most helpful).100%.
Some PS employers even host brochures for Cornmarket products on their intranet presumably at the behest of the unions.
Naive staff will assume it’s endorsed or even the only option for them.
It's simple to claim tax back on pension conts.
I worry about our education system if teachers can't do this.
Horse for courses maybe? Although I have a public sector pension my plans to retire early demand that I have savings to bridge the gap to State pension. My AVC is low risk as I want to be fairly sure that it will bridge that gap, which it will if it just bobs along.For individuals in the public sector the requirement for such risk reduction is not clear to me given the guaranteed nature of the public sector pension.
just on this is there way of forcing any governmental department to do deductions at source for any other reasonably priced scheme other than this complete rip off - I think my wife was loosing 4.5% on placement and 1.5 % on amc on her avcs absolutely scandalous stuff
Have you seen the pension modellers? Its a bit clunky, but will show cost of buying back years or what your benefits will be based on service.Thanks Dublin67 good point raised. I have found it extremely difficult to find info on buying back years. I wonder is it better value for Single Scheme members too?
just on this is there way of forcing any governmental department to do deductions at source for any other reasonably priced scheme other than this complete rip off - I think my wife was loosing 4.5% on placement and 1.5 % on amc on her avcs absolutely scandalous stuff
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