Hello all again, This area has generated alot of interest again lately and I've been looking it up alot on AAM, where all threads and posts are very informative. Well done to all.
But I have n't seen a similar situation to mine on AAM yet. So here goes.
I started teaching when I was 22.I'm now 35. I intend to have the option to retire at 55yrs of age. ( 33yrs teaching + 2yrs for 4yr degree course). So to increase my pension benefit I have been paying into a Marsh AVC for the last 10 yrs, (€9k of a fund there now)which I am about to change to a Low cost Eagle Star PRSA. Is this wise?
I was also on to my employer (VEC) to purchase 2.6 years if I wanted to retire at 60, on full pension, they quoted me €61,166 for 2.6 yrs. (1.17% of Salary 'til I reach 60)Some of which I can claim back on tax I'm sure. Is NSP that expensive??
What are peoples views on this, should I forget about the NSP, or just increase contribution to a PRSA AVC? All replies appreciated.
Thanks for the reply MJB, Can I ask are you taking much of a reduction in your teacher's pension and final lump sum by going at 55/56?Am buying 2 years notional service by periodic deduction from age 60
There's no reduction provided you have 35 years service and are minimum 55yo (no longer true for new recruits but that's not relevant here).Thanks for the reply MJB, Can I ask are you taking much of a reduction in your teacher's pension and final lump sum by going at 55/56?
No, if you satisfy the conditions I mention above you can get your pension paid immediately on retirement.Also probably a daft question, is it true that you will have to live on your AVC (or ARF) only, from 55 until you reach age 60, then you get the teachers' pension?
If you don't fall under 35/55 you can stop working and defer your pension until 60 but in this case I don't think you can draw down anything from your AVC until the occupational pension is paid (to the best of my knowledge).
If you pay by lump sum and retire before 35/55 kicks in, the value of the notional service you will be entitled to will be actuarially reduced in line with the reduction in your actual purchased service. If 35/55 has kicked in, there would be no reduction.Hello Oysterman, I've been given the option to buy 2.6yrs at a total price of €61K lumpsum or €1637/month, payments for the rest of my teaching career. Or I could buy one year for €23K lump sum or €629/month for the rest of my teaching career. I dont know what I will do yet. Have you any advice?
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