teacher pension query - change from nsp to avc??

bungaro79

hi all,

i changed career from finance into teaching and started full time in sept 2008. i was 28 at the time so i was going to be 3 and a bit years short of my full pension so i started paying into the nsp. now i'm 34 and i am looking into starting up an avc (not through cornmarket) with zurich or someone else just to have a few bob extra when i retire.

from what i've read here and in other places would i be right in thinking if i was to retire early (if given the option) then all the money i would have paid into the nsp would basically be lost as it is calculated to age 65??

if this is the case then should i stop paying it and pay it into the proposed avc instead?? this could be used to top up the missing portion from my full pension??

and i've read that some discount brokers can offer 105% allocation rate, what does this mean??

Alan152

Hi bungaro.

If you are using avc's you can use this value at retirement to buy some years if your wish. If your doing the avc yourself it would usually be th prsa avc by direct debit and work out the tax relief yourself, where did you see 105 allocation, doesn't seem right but if it is, it will incorporate what is called a bid offer spread which reduces the allocation to a net figure. Allocation rate is what your premium is allocated each month, I.e 100 euro from your bank account at an allocation rate of 98% means €98 goes into the fund each month.

bungaro79

thanks alan. i saw about the 105% allocation rate in some other thread on here, would be great to get more than what you invest!