Do I need to start a private pension?

[JMMLaois]

I'm reading Eoin McGee's new book and he is extremely pro pension. Both myself and my husband have public sector defined benefit pensions. We are happy that will be enough for us to life a good standard of life in retirement. Separately we have been putting money in to investments. This has been earmarked for possible college costs for 2 children, or if we are able to cashflow this as a possible bridge to retirement. Or if it's not used at all then as an inheritance for our children down the line.

Are we missing a trick by not putting money in to a private pension instead of this investment? And reducing on tax in the process. My concern is that the investments will survive one or both of us, if it comes to it, whereas the pension will die with us with possible survivor benefits instead. And I don't like the idea of not being able to access it until 60 or so. Whereas that is not the case with investments. I'm afraid of being pension rich and cash poor as my husband put it.

I would be grateful for any advice or input on this as I feel a bit lost on the topic. Thanks!

 

[Conan]

McGee is very "Pro pensions" for those who don't have one.
If both of you have Public Service DB Pensions then you are very well catered for. The only issue might be whether you will have full service at retirement age (generally 40 years). If so, then you don't need to do any more, pension wise. If you will have less than full service, then you might consider AVC's.
So assuming you will have full service by retirement age, your strategy is good (you cannot do much more in terms of pensions).

 

[JMMLaois]

McGee is very "Pro pensions" for those who don't have one.
If both of you have Public Service DB Pensions then you are very well catered for. The only issue might be whether you will have full service at retirement age (generally 40 years). If so, then you don't need to do any more, pension wise. If you will have less than full service, then you might consider AVC's.
So assuming you will have full service by retirement age, your strategy is good (you cannot do much more in terms of pensions).

Thank you very much for taking the time reply to my question. I really appreciate it.

 

[Slim]

Thank you very much for taking the time reply to my question. I really appreciate it.

Your pensions don't die with you. Your PS pension will continue to be paid, at 50%, to the surviving spouse/partner. If you invest in a private pension, PRSA, that will be paid out to the survivor. If you wish to retire early, the PRSA can be accessed along with or in advance of your DB pension, if you, for example, you took early retirement and preserved your benefits.

 

[Slim]

Duplicated. Don't know why!

 

[Conan]

Your pensions don't die with you. Your PS pension will continue to be paid, at 50%, to the surviving spouse/partner. If you invest in a private pension, PRSA, that will be paid out to the survivor. If you wish to retire early, the PRSA can be accessed along with or in advance of your DB pension, if you, for example, you took early retirement and preserved your benefits.

This is not quite correct.
Firstly, to invest in a PRSA you either need a different income (say a self-employed income) or the PRSA has to be an AVC PRSA.
Assuming you don’t have some other non-pensionable income, then you can only invest in an AVC PRSA if your public service pension is less than the Revenue maximum. If you will have full service by retirement, then there is very limited scope for AVCs. And such funds ONLY be accessed when you retire from the public service.