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Financial advice

  • 28-02-2020 3:11pm
    Registered Users Posts: 3,159 ✭✭✭

    I'm looking for a bit of advice about AVCs/Savings funds/general financial advice.
    Strongly considering going to an independent financial advisor.

    Im currently contributing to a public servants pension. But I'm wondering if I should contribute more or focus on a mortgage deposit?

    Online reviews for AVCs seem to be a mixed bag but others I've spoken to swear by them.
    Wouldn't be retiring for 30 years at least.

    Aside from AVCs, I've looked at savings funds offered by the likes of Zurich. On paper they seem like the market leaders. The likes of cornmarket seem laced with hidden fees and charges.

    Negative bank interest rates seem to be inevitable and I'd like to get ahead of the game.
    As it is my savings are loss making versus inflation. But they are also secure.

    Essentially, I'm looking to make some of my money work a little harder for me.
    I wouldn't feel the loss of €100ish per month and I'd be quite happy if I knew it might benefit me down the road.


  • Registered Users Posts: 3,082 ✭✭✭Static M.e.

    Which PS pension? Pre 2004, Single scheme etc? Depending on what pension you have, you could already be maxing the age related pension contributions from revenue. Check with your HR team but it is likely that they have an agreement with cornmarket for AVCs. Cornmarket will offer you a free financial assessment which may tell you what the shortfall in the future might be. They will, of course, try to sell you other products (various insurances) but you don't have to buy.

    If you need to save for a mortgage then I would prioritise that first.

  • Registered Users Posts: 3 patdownes

    a couple of questions are relevant here. do you intend to work the full 40 years and do you intend staying until normal retirement age.

    the main advantage to AVC's in your case is to maximise your tax free lump sum on retirement. if you reach normal retirement age with the CS and you have worked the full 40 years then there will have been no point in contributing through AVCs as you will be entitled to the full 1.5 times salary anyway for your tax free lump sum.

    If you stay to normal retirement age but have only worked 30 years then the state will pay you 3/4 of your 1.5 salary lump sum but you will be entitled using an uplifted scale to have built up the extra 1/4 through AVCs. You should note that the AVC's can be contributed to at any stage up to retirement subject to limitations on amounts that can be contributed in any one year. These limits are pretty generous so I wouldn't sweat it too much as long as you give yourself a few years pre-retirement to make the contributions.

    Like the previous contributor I would concentrate on building up a mortgage deposit.

    on the subject of the savings. go to an independent adviser. zurich have the best offerings and in my experience cornmarket do tend to have heavier charges.