T
ThinKing
Guest
My Girlfriends mother is approaching normal retirement age.
She will have a full pension at NRA.
My gf told me today that a Cornmarket rep was meeting with her mother this evening to discuss her options (My blood froze at the thought of her getting Cornmarket's "Independent" advice - as my gf as been a victim of their ludicrous charges in the past, but anyway).
Apparently 2 of the Cornmarket reps proposals were
a) to purchase income protection insurance to protect her Husband in the event of her death
b) to pay AVCs now to take advantage of the tax breaks available (or something along those lines)
The first question I said to ask was "How much does the consultation cost?" - as I could see a sneaky cornmarket fee of €800 dissapearing very easily.
Secondly, I told her not to go near (a) as it was almost certainly a highly overpriced insurance, especially considering that she's a member of the spousal protection scheme - Husband entitled to a 50% pension on her death I think.
Thirdly, I think that there is no point in contributing to AVCs seeing as she will be entitled to the 150% Lump sum and 50% pension anyway and cannot receive any more than this.
My question is would you say that my advice is sound?
Is there any possible tax benefit to paying into an AVC now? e.g. pay in with 40% tax relief, withdraw at 20% tax in a couple of years?
(Unlikely I know, I'm just trying to fully understand all of the options)
Many thanks,
TK
She will have a full pension at NRA.
My gf told me today that a Cornmarket rep was meeting with her mother this evening to discuss her options (My blood froze at the thought of her getting Cornmarket's "Independent" advice - as my gf as been a victim of their ludicrous charges in the past, but anyway).
Apparently 2 of the Cornmarket reps proposals were
a) to purchase income protection insurance to protect her Husband in the event of her death
b) to pay AVCs now to take advantage of the tax breaks available (or something along those lines)
The first question I said to ask was "How much does the consultation cost?" - as I could see a sneaky cornmarket fee of €800 dissapearing very easily.
Secondly, I told her not to go near (a) as it was almost certainly a highly overpriced insurance, especially considering that she's a member of the spousal protection scheme - Husband entitled to a 50% pension on her death I think.
Thirdly, I think that there is no point in contributing to AVCs seeing as she will be entitled to the 150% Lump sum and 50% pension anyway and cannot receive any more than this.
My question is would you say that my advice is sound?
Is there any possible tax benefit to paying into an AVC now? e.g. pay in with 40% tax relief, withdraw at 20% tax in a couple of years?
(Unlikely I know, I'm just trying to fully understand all of the options)
Many thanks,
TK