UbiquitousQ
Registered User
- Messages
- 8
Hi
Hoping you might have some insight to Last Minute AVCs. Was speaking to someone in Cornmarket about it last week so know how it works with fees etc, but he said my maximun I could invest was about €20K. It says on Money Maximising's website:
By my reckoning then, if I have 40 yrs service at my current annual rate of pay, i'd be getting about €139K in my lump sum. When I plan to retire next year I'll have 31 yrs service so potentially €104K if I waited to draw it down at 60 - shortfall of €35K. As I'll be taking acturaily reduced and would like to draw it down on retirement date, I will be getting approx €92K which is a shortfall of €47K (these are all rounded).
I pay a civil service pension contribution of 1.5% and ASC so my taxable income for this year will be approx €84K, and I'll be paying approx €22K tax.
Obviously I want to get the maximum benefit of a Last Minute AVC, so be good to get some perspective on how much I can invest (not looking for the exact amount - just the theory on how it should work). Have tried the various websites but they all want a phone consultation so the info is not that forthcoming.
Ta
UBQ
Hoping you might have some insight to Last Minute AVCs. Was speaking to someone in Cornmarket about it last week so know how it works with fees etc, but he said my maximun I could invest was about €20K. It says on Money Maximising's website:
If you have less than 40 years of service at retirement, you will have a tax-free lump sum shortfall. This is basically the difference between the tax-free lump sum that you have earned with your years of service and the maximum Lump sum you would have earned if you worked the full 40 years of service.
Your tax-free lump sum shortfall is the optimum amount of funds to be transferred into an AVC.
Your tax-free lump sum shortfall is the optimum amount of funds to be transferred into an AVC.
By my reckoning then, if I have 40 yrs service at my current annual rate of pay, i'd be getting about €139K in my lump sum. When I plan to retire next year I'll have 31 yrs service so potentially €104K if I waited to draw it down at 60 - shortfall of €35K. As I'll be taking acturaily reduced and would like to draw it down on retirement date, I will be getting approx €92K which is a shortfall of €47K (these are all rounded).
I pay a civil service pension contribution of 1.5% and ASC so my taxable income for this year will be approx €84K, and I'll be paying approx €22K tax.
Obviously I want to get the maximum benefit of a Last Minute AVC, so be good to get some perspective on how much I can invest (not looking for the exact amount - just the theory on how it should work). Have tried the various websites but they all want a phone consultation so the info is not that forthcoming.
Ta
UBQ