When I retire, I would like to take the AVC proceeds as a lump sum thereby forgoing the lump sum option on my employer pension from which I would opt for a monthly pension only. Is that possible?
If I were to retire before 65 I wouldn't necessarily need to take the lump sum at that time (financially speaking) so I would be happy to leave the AVC fund to grow for a while longer. Is that possible?
I am prepared to make sizeable contributions but am concerned I might build up a sum that would exceed the maximum lump sum I will be allowed to draw down on retirement.
Can anybody advise what that maximum lump sum figure might be so I can work out how much to contribute?
Up until recently, I presumed that all PS pension schemes offer:
lump-sum + pension
However, I recently discovered a PS pension scheme which gives staff a choice about the lump-sum.
The other option is zero lump-sum, and a pension based on 1/60 accrual, not 1/80.
View attachment 8564
It seems you are in a scheme like that?
My pension scheme allows for two options on retirement, either Pension Only or (Reduced) Pension and Lump Sum. I was hoping to take the pension from the employer and lump sum from AVCs. Is this not permitted? i.e. if you want to take a lump sum at retirement it has to come from the employer scheme? Is this a Revenue rule?
When I retire, I would like to take the AVC proceeds as a lump sum thereby forgoing the lump sum option on my employer pension from which I would opt for a monthly pension only. Is that possible?
Thank you, that slide seems to cover it alright.This presentation to NUIG by New Ireland (see slide 17) seems to suggest if you go for the higher 60ths pension, you can fund using AVCs for the full lump sum and not for the difference as I outlined above.
Most of the work we do is with private sector pension schemes and I'm just not familiar with a public sector scheme that allows you an option NOT to take the lump sum from the scheme. But we do see that occasionally with private sector DB pension schemes. In those circumstances, if the amount of pension being forfeited from the DB scheme for a lump sum is too much, then an AVC works well. Assuming no upper limits are being breached, you can fund an AVC just to provide a tax-free lump sum at retirement without touching the pension from the DB scheme.
If I were to retire before 65 I wouldn't necessarily need to take the lump sum at that time (financially speaking) so I would be happy to leave the AVC fund to grow for a while longer. Is that possible?
Thank you for this. Do you know if I could draw down the AVC lump sum at a later stage than the occupational pension? Say retire at 60 or 61 and take the pension but leave the AVC to grow for a another few years?
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