TheInstitution
New Member
- Messages
- 2
Hi all,
I'm currently trying to work out my pension pot for early retirement. I'm a public servant, joined in 2001, hoping to leave at 60 with 36 years service (short by 4 years). I'm working on my AVC to make up the difference between what I will receive at 60 and what I would have received with 40 years service at age 64.
I've worked out that if I live to 82 yrs I would need €174,000 to get the same amount from aged 60 to aged 82 compared to if I had done my 40 years. For my calcs I have also upped the state retirement age from 66 to 68 just in case it increases between now and when I plan to go. The largest portion of my pot is to cover 8 years of receiving no state pension from aged 60-68.
I've been advised that a minimum pension pot would need to be approx 1/2 my final salary.
My full pension entitlement (contributory and state) would be approx 1/2 my final salary @ 40 years service.
However I'm unsure whether this magical 1/2 figure is before or after tax?
When I look at my current monthly net pay (excluding AVC payments) and compare it to my projected pension after taxes and USC, the net pension figure is 65% of current net pay.
I guess I'm trying to figure out if my pension after tax of 65% of current net salary is sufficient or if the cals should be based on gross income meaning that I'm merely hitting the minimum target of 50% of final income?
Thanks
I'm currently trying to work out my pension pot for early retirement. I'm a public servant, joined in 2001, hoping to leave at 60 with 36 years service (short by 4 years). I'm working on my AVC to make up the difference between what I will receive at 60 and what I would have received with 40 years service at age 64.
I've worked out that if I live to 82 yrs I would need €174,000 to get the same amount from aged 60 to aged 82 compared to if I had done my 40 years. For my calcs I have also upped the state retirement age from 66 to 68 just in case it increases between now and when I plan to go. The largest portion of my pot is to cover 8 years of receiving no state pension from aged 60-68.
I've been advised that a minimum pension pot would need to be approx 1/2 my final salary.
My full pension entitlement (contributory and state) would be approx 1/2 my final salary @ 40 years service.
However I'm unsure whether this magical 1/2 figure is before or after tax?
When I look at my current monthly net pay (excluding AVC payments) and compare it to my projected pension after taxes and USC, the net pension figure is 65% of current net pay.
I guess I'm trying to figure out if my pension after tax of 65% of current net salary is sufficient or if the cals should be based on gross income meaning that I'm merely hitting the minimum target of 50% of final income?
Thanks