Can I retire at 48 but wait til 65 to draw down pension and lump sum, thus avoiding CNER penalties?
Another option is to save into an AVC now for the next decade. As I'd have 25/40 years service, I could save a good bit into an AVC and get it all out as tax free lump sum
e.g. say final salary 90K. Lump sum with 40 years is 135,000. Lump sum earned with 25 years is 84,375. So I could save and take out 50,625 from an AVC at 65 tax free?
Q2. I believe I cannot drawn down my AVC at 60 as I won't be drawing down by pension and lump sum til 65, as these are linked, even if I have resigned from the service?
Q3. Is there any analysis out there? My union recommend Cornmarket. I also see Lyons Financial Services. No idea which is the better.
Have you contacted your HR Department as they will be the deciding if it is possible to retire early, that is what l was told. Also l think CNER, work pension is possible from 50 following a change in rules a few years ago, also does that pension sum include/exclude the old age pension contribution.
Yes.""Another option is to save into an AVC now for the next decade. As I'd have 25/40 years service, I could save a good bit into an AVC and get it all out as tax free lump sum
e.g. say final salary 90K. Lump sum with 40 years is 135,000. Lump sum earned with 25 years is 84,375. So I could save and take out 50,625 from an AVC at 65 tax free?
Yes."
Are you sure about this? On another thread on this topic, it is stated that top up of lump sum, tax free, from AVC is max 25%. Also, as OP will preserve his pension based on 25 years, what top up could he avail of, given that there is no CNER reduction?
This is more life than financial advice, but.........a man of 48 has an average of 32 years to live. Kids grow up fast and that's a long time to have to fill the day. Your plan also leaves you vulnerable to a change in your wife's financial situation.
A career break is absolutely the way to go here.
You simply don't know what life could throw at you. Say, God forbid, your husband got sick or some other calamity was to befall you or your family? Maybe you will not like to be at home all the time and seek to resume your career?
At least with a Career Break you know you would have a job to go back to you if circumstances changed that necessitated a return to work.
Hmm, the PRSI stamps issue is something I hadn't thought of too much. AFAIK being in the public service, PRSI class A, part of my pension will come from State Pension Contributory (SPC) and the balance from my final pension.
e.g. final pension say 25/40 years * 90K final salary * 50% = 28,125 pension due p.a.
SPC is currently c. 13K so my pension would be 13K SPC (if full stamps which I won't I guess with just 25 years worth) + balance of 15,125 from my Dept = 28,125 due
If say my SPC is lower as less PRSI stamps, then the balance paid by Dept would just be higher to make up the shortfall?
Yes, I think the 5 year career break option is what I'd choose and then see if I wish to return to the workforce then (at 53) or to resign.
Reality of all day at home with young kids might have me very keen to return!
Not Quite.
Your preserved Occupational Pension (from Dept) with 25 years service would be circa €20K.
Interesting. How is that amount calculated?
So 20K Occupational Pension + possible 13K more of SPC depending on PRSI stamps? As mentioned by Mrs Vimes (nice Terry Pratchett reference btw!), I'd try for the Homecarer credits so during 5 year career break
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