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Yes, with the notional service route I outlined above you would be treated on retirement as if you had worked the extra 5 years i.e. you'd be buying a right to 15/80ths of lump sum (tax free) and 5/80ths of pension. And, of course, you'd get full tax relief on the notional service contributions.Glenbhoy said:in addition to that mentioned above, you also get a tax free lump sum on retirement of a maximum of 120/80ths of your final salary, ie 1.5 times your final salary based on 40yrs service. For 35 years service, i imagine it would be 105/80ths, again it's probably possible to top this up (my italics).
I am 30 and this is my 5th year primary teaching (permanent). Feel bombarded by all this pension news. Have not got a clue about whole area. I am making the standard contribution (I think!). Would like to retire after 35 years service. What would I be entitled to on retirement? What are the advantages of making an AVC contribution or buying back years service?
A very confused Hippykitten.
Ring the Primary superannuation section in the DES and get the name of the person who deals with notional service purchase. Write to that person asking for a quote for "maximum notional service purchase starting on the date of my next birthday, by periodic deduction, based on retirement at age 60". You'll get a quote eventually - they tend to be very slow. You can then talk to Cornmarket about AVCs, if you want, and compare the two quotes. But you won't hear much positive comment on this site about Cornmarket and its (extortionate) fees.
Wow, talk about early burnout!Teaching for 6 years (31) and [...] would like to retire early.
Teaching for 6 years (31) and am just making the standard pension contribution (about e160 a month). This seems quite a small amount to me as I would like to retire early. What would it cost me to set up and maintain AVC's? Can I get them from somewhere other than Cornmarket? Are there any other options pension options available to me? Thanks a mil.
I am 30 and this is my 5th year primary teaching (permanent). Feel bombarded by all this pension news. Have not got a clue about whole area. I am making the standard contribution (I think!). Would like to retire after 35 years service. What would I be entitled to on retirement? What are the advantages of making an AVC contribution or buying back years service?
A very confused Hippykitten.
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