Tim.Dublin
Registered User
- Messages
- 3
I was self-employed for years, and I started a PRSA a few years ago as soon as they were announced. I got a 0% commission "execution only" plan for a flat rate one-off fee to a financial broker, and am very happy to date with how well it is doing, and with the fact that 100% of my contributions are being credited to me.
Last year I was offered a very well paid 3-year contract in the Public Service, which I would have been mad to turn down. I am in the Public Service pension, and paying income tax through PAYE, and paying PRSI at the full A rate. I have no mortgage, kids have left home and no longer dependent on me, no partner, and very few outgoings. The money I am getting from the government job is leaving me with plenty plenty unspent.
I have priced up buying additional pension years but my age (56) and the short term of the contract (3 years) means it is simply not worth while, it would cost far more than any future benefit when I hit 65.
Alternatively, I can buy AVCs in the official scheme approved for my organisation. However, these carry a whopping 5% skim straight off the top, plus other big annual fees. Quite frankly, the level of advice and service that I get in return for this is nil.
I can afford to put aside around €25,000 per year for the 3 years of this contract into a tax-efficient fund. Why should I hand over €1,250 each year to a financial consultant who will nothing more than take my cheque, lodge it to the AVCs and pocket 5% commission?
I have asked him straight out if I can or cannot alternatively put this money into my current (self-employed) PRSA plan and get the tax back from my PAYE/PRSI income when I fill in the annual Form 11 (I have a dividend income from shares I inherited of around €3,000 a year). He simply will not give me a yes or no answer. He hums and haas and looks askance.
Please, can someone here tell me if I have a choice - can I chose another AVC plan on an execution-only deal with a broker? Can I put it into my current PRSA? Or am I stuck with the "official" public service AVC plan for my sector?
Thanks!
Last year I was offered a very well paid 3-year contract in the Public Service, which I would have been mad to turn down. I am in the Public Service pension, and paying income tax through PAYE, and paying PRSI at the full A rate. I have no mortgage, kids have left home and no longer dependent on me, no partner, and very few outgoings. The money I am getting from the government job is leaving me with plenty plenty unspent.
I have priced up buying additional pension years but my age (56) and the short term of the contract (3 years) means it is simply not worth while, it would cost far more than any future benefit when I hit 65.
Alternatively, I can buy AVCs in the official scheme approved for my organisation. However, these carry a whopping 5% skim straight off the top, plus other big annual fees. Quite frankly, the level of advice and service that I get in return for this is nil.
I can afford to put aside around €25,000 per year for the 3 years of this contract into a tax-efficient fund. Why should I hand over €1,250 each year to a financial consultant who will nothing more than take my cheque, lodge it to the AVCs and pocket 5% commission?
I have asked him straight out if I can or cannot alternatively put this money into my current (self-employed) PRSA plan and get the tax back from my PAYE/PRSI income when I fill in the annual Form 11 (I have a dividend income from shares I inherited of around €3,000 a year). He simply will not give me a yes or no answer. He hums and haas and looks askance.
Please, can someone here tell me if I have a choice - can I chose another AVC plan on an execution-only deal with a broker? Can I put it into my current PRSA? Or am I stuck with the "official" public service AVC plan for my sector?
Thanks!
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