I want to top up my cwps pension

Philip82 · 09-01-2025 10:29PM #1

Hi. Im 41 and showing the sensible side of growing old by trying to plan for my future. The problem is I haven't started with any realistic investment to date so I'm having to seriously invest in some type of avc or similar to try get the ball rolling before it's too late. I have some contribution to cwps pension through employer at the moment maybe only 10k. I have discussed already with employer and he said he is willing to contribute to an avc fund for me. My current thinking is for a combined contribution of around 8k per year to avc fund plus additional standard pension contribution which is around 3k per year .I have little knowledge of how or what this contribution may mean to the average person in terms of what this will generate if I was to work with full contribution to let's say 65 and more importantly is it anywhere close to what's recommended for the average person. (I'm aware everybody's lifestyle is different but you know what I mean)

This might be a stupid question aswell but if my pension is with cwps through my Job does it mean I need to set up avc with cwps also or is there anymore sensible options I have considering my employer is going to account to half my contributions?

Jim2007 · 10-01-2025 03:26PM

You probably (almost certainly) need to start with a financial plan before you start pumping money into any financial products!

As you say 20 years or so is not a long time in pension planning so you will probably have to take higher risks that some other people. The question is how much risk? And the only way to answer that question is to put some kind of a figure on who much you'll need to have in retirement. Which is about the same as asking how long is a piece of string! In my experience most people struggle to live a contented life on less than about 60% of their current salary. Yes work related expenses go down when you retire, but most people at the age are still in good health and with time on their hands they want to make the most of it so spending actually goes up!

It might be a good idea to pay for a session with a financial planner and come up with a workable strategy before going investing in random in the hope of hitting on the right one.

Philip82 · 10-01-2025 06:31PM

Excellent. Thanks for the advice.

The J Stands for Jay · 12-01-2025 04:08PM

https://www.boards.ie/discussion/2058387409/i-want-to-top-up-my-cwps-pension

To answer your question, you don't need to go through CWPS for an AVC.

Cairnq1 · 29-01-2025 04:07PM

The CWPS scheme has very low charges in comparison to individual contracts. no commission with 100% allocation. i.e if you put in €100 then the full €100 gets invested in your pension. The most cost effective option is AVC's through the CWPS scheme. It isn't clear from the CWPS booklet what is the maximum employer contribution.booklet says……

'Your employer contributes 4.2% of an agreed amount to CWPS'.

re. can you do AVC's outside the scheme? no you can't. AVC's are attached to the scheme. You can however do an individual PRSA AVC seperate to the scheme. slighlty different but achieves the same end goal. You will be hard pressed to find a PRSA AVC with comparative charges to the CWPS scheme and the tax relief is done at source from salary within the scheme. PRSA AVC…. claiming tax relief is your responsibilty.

The J Stands for Jay · 11-02-2025 12:20PM

https://www.boards.ie/discussion/comment/123112766#Comment_123112766

The main difference is that the AVC provider will allow you to take a lump sum based on salary and service, CWPS only pay out 25% of the fund.

I want to top up my cwps pension

Answers