Public Servant - Short Years at retirement

mozzer

Registered User
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106
Good morning

To have the full 40 years of service at retirement I will need to work until I am 67.

I was happy to do that until recently when I had a change of heart and decided it would be better to retire probably in my early 60s. I then decided to align my retirement with my wife's retirement.

She wants to retire at 60. If I retired at the same time I would be 62.

With that in mind I have started contributing to an avc fund.

As I will be short 5 Years at 62 I would like to know what will happen if I contribute more than the expected shortfall i.e the difference between 35 years and 40 years service?

I am thinking of using some of the avc funds to maximise my lump sum and to leave the remaining money in an arf from which I can draw down every year. Is this a tax efficient strategy?

Final question, if I was to maximise my avc contributions within revenue limits and I ended up with a very large avc fund which resulted in it making my total pension pot larger than what I would have received with 40 years of service...Is there a problem with this?
 
Last edited:
I think you ran through much of this before in this thread : https://www.askaboutmoney.com/threads/contributing-to-an-avc-what-if-i-dont-retire-early.218938/

As a post-1995 Class A PRSI public servant, and given your previous information, you should not have any difficulty with overfunding via AVCs. Once you top up your tax-free lump sum to the max you can transfer the balance to and ARF to draw down flexibly. The issue you need to consider is whether you and your wife are likely to be top rate tax payers in retirement, and whether it is worth funding an AVC towards an ARF in the event that you are.
 
I think you ran through much of this before in this thread : https://www.askaboutmoney.com/threads/contributing-to-an-avc-what-if-i-dont-retire-early.218938/

As a post-1995 Class A PRSI public servant, and given your previous information, you should not have any difficulty with overfunding via AVCs. Once you top up your tax-free lump sum to the max you can transfer the balance to and ARF to draw down flexibly. The issue you need to consider is whether you and your wife are likely to be top rate tax payers in retirement, and whether it is worth funding an AVC towards an ARF in the event that you are.

EarlyRiser

Thank you very much. I don't know where my head is at these days. Shortly after posting I looked at my previous post. I had completely forgotten about it.

Apologies to all. Perhaps a moderator could close this as Earlyriser and others have already kindly advised me about this.

Thanks again to all
 
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