Pension /public servants - arf? Prsa

deco87

Registered User
Messages
405
I have a PRSA for 15 yrs. , due to finish at 55. I am 49 now , I have about 12 k or so in it at Mo , just upped payments monthly to 160 ..

Just after listening to a guy on Joe Duffy show who had a pension saving plan of some description , over 30 yrs he had 40 k in it at the end...but he only got 11k cash and now gets 117 per month as an (ARF?) and as he says himself ...it wouldn't buy toilet roll!

On reading the small print on mine ...I seem to be heading down the same road...I would much prefer a lump sum of some sort rather than this very small sum....each month and a very small cash amount...my cash amount will depend .."on my circumstances" when I retire, I have no way of knowing what the lump will be or indeed the monthly payments just a rough guess..from PRSA provider...

Question...have I any options in the middle of this PRSA , besides just stopping it ...and starting some other type of policy...at this late stage
Many thanks

Deco
ps public servant ..age 49 can retire at 50 or 60 latest ...thks again deco
 
The title of your post is too vague. Please it in line with the Posting Guidelines.

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Brendan
Administrator
 
Deco87,
The clue to what this is is in the word "pension". If you are a a Public Servant, then presumably what you have is an AVC PRSA, i.e. Additional voluntary contributions.
As a general rule I would caution against believing any story on Joe Duffy.
If you have an AVC PRSA then it is aimed at providing additional retirement benefits to what you will get from the Public Service when you retire (lucky you being able to retire on full pension at age 60).
As an AVC fund you will have a number of options when you retire:
1. You may be able to take some or all of it as a lump sum (perhaps tax free) depending on what lump sum you get from your main pension scheme
2. Anything not taken as a lump sum can be invested into an Approved Retirement Fund (ARF)
3. Or you can buy an additional annuity to increase your Public Sector pension.

Based on your contribution level remaining intact your PRSA provider should be able to give you an estimated value at say age 60, based on certain assumptions.

Clearly if you can use the PRSA to increase your lump sum on retirement, then that is the best option. But whether you can, depends on what your public sector benefits will be.

Perhaps talk to your pension advisor.
 
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Ok thank you.I have one other post that I would love your advice on-
Do you select some posts to look at randomly or what way does that work please thanks
Deco
 
@Dec, my apologies, I thought that Brendan's reply was tongue in cheek.

I did not realise that you would take offence.
 
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