Last Minute AVC options

[DCSF]

Ok so finally after lots of pondering, and some posts on here, I'm looking at retiring end of next year, probably.
I'm 59, 60 in Dec 25.
I'm looking at Last Min AVC options.
let's assume I'll have 20 years PS service ( I do have 20 years else where but let's park that)
Assume salary 80k.
My Calculations:
Max Tax Free lump sum 120k
My Tax Free Lump sum 60k so scope for 60k last min AVC.

Start AVC before end Oct 25 - lodge lump sum of 20k for 2024 and 20k for 2025, next year lodge 20k for 2026. 60k in fund (tax savings 24k)
Obviously less AVC fund manager fees etc.

Is this possible as a last Min AVC or would I have to wait till just before I retire next year and start AVC before end Oct 26 (next year) and lodge lump for 2025 (this year) and lump for 2026? I could probably lodge about 50k in total with the 35%/40% max contributions rule.

In either event, whom would I be best going to? Cornmarket?
I've tried a few advisors etc and they all seem to want me to start income funds etc where all I really want is a bumped up Tax free lump sum.

Thanks

 

[ClubMan]

Cornmarket?

Their charges are normally high. What are they quoting you?

I've tried a few advisors etc and they all seem to want me to start income funds etc

What exactly do you/they mean by this?

If an execution only service with little to no advice might suit you then I would suggest that you check out the low cost (usually execution only) suspects...

Ferguson and Associates

Pensions (including Self Administered) Life Assurance - Income Protection Savings - Investments

www.ferga.com

https://www.labrokers.ie

PRSA Ireland | PRSA.ie

Low Cost Pensions Ireland Zurich LIfe The Value Pension Website Execution Only PRSA AVC PRSA Pensions www.prsa.ie

www.prsa.ie

 

[Ruffian]

I'm 59, 60 in Dec 25.
I'm looking at Last Min AVC options.
let's assume I'll have 20 years PS service ( I do have 20 years else where but let's park that)
Assume salary 80k.
My Calculations:
Max Tax Free lump sum 120k

That is so if your scheme has a "normal retirement age" of 60, ie, you are a pre-2004 entrant (and you have 20 years service in the scheme). If your normal retirement age is 65 and you are taking CNER there is a reduction in Revenue's max tax free lump sum. From one of your previous posts:
"I spent 19 years in a semi state, started in 1986..took Vol Severance in 2005."

 

[DCSF]

Hi

Yes, 60 is my normal retirement age and I'll have over 20 years in current employment.

I've been told by pensions advisors that my previous semi state employment doesn't count towards 40 year max as it wasn't public service and that my pension lump sum that I took with vol severance payment doesn't count now either as it was in April 2005..

 

[DCSF]

I've tried a few advisors etc and they all seem to want me to start income funds etc

What exactly do you/they mean by this?

I've spoken to Pension advisors and all seemed to want me t put in excess money and set up PRSA type thing..

 

[ClubMan]

I've spoken to Pension advisors and all seemed to want me t put in excess money and set up PRSA type thing..

I still don't really understand what you/they mean. But a PRSA can be set up using a lump sum or regular ongoing contributions or a combination of both in case that clarifies anything you you?

 

[Ruffian]

I've spoken to Pension advisors and all seemed to want me t put in excess money and set up PRSA type thing

Unless you go with Cornmarket your are looking at a PRSA-AVC. Just the same as a regular AVC (Cornmarket) except there is no option for payment by salary deduction and you have to claim the tax relief yourself (via MyAccount). Either can be used for what you are looking for.

 

[DCSF]

Thanks all....
I guess I'm just seeing if I can set up Last min AVC year before I retire and not have to wait till I'm about to retire .

 

[S class]

You can set up an AVC PRSA now. You can start it with either low monthly contributions or a modest lump sum. You can then add more funds into it anythime before your retirement date.

If you don't want advice go to an execution only broker. You can get set up by requesting an AVC PRSA information pack from the broker by email. They will send you the application forms and you can print them, fill them in, and scan them back to the broker.

You will get a better deal than from Cornmarket.
If you are only using the AVCs to gain extra tax free lump sum, you should opt for a low risk fund. All details of fund choice and risk level wil be in the information pack.

The execution only broker can assist you with filling in the application form.