Since the Covid-19 pandemic in Ireland, even more public sector employees have been turning to us for advice on life protection, public sector pensions and retirement. Therefore, we put together a useful check list of what to prepare if you are considering retirement soon. IPS Financial Advice has established experience in providing financial advice to public and civil service employees in Ireland since 2001. We work closely with the HSE, local government offices, universities, and schools to cater to their employees’ very specific financial needs.
Public Sector Retirement Check List
1. Service History in Public Sector
You can request this from your employer. The best way to contact them at this time is to email [email protected] This document will detail time spent in each public sector employment and if you were a member of the public sector pensions scheme during this time.
2. Other Service History
If you have service history outside of the public sector, i.e. private sector employment or self-employed, you will need statements of pension benefits. IPS can get these for you with a Letter of Authority.
3. Public Sector Pensions Forecast
You can request your public sector pensions forecast from your employer. The best way to contact them at this time is to email [email protected] Your service history together with your pension forecast are essential to confirm when you joined the pension scheme, that all service has been correctly allotted and that your pension is not subject to Cost Neutral Early Retirement.
4. Up to date Statement of AVCs (if applicable)
If you have paid into Additional Voluntary Contributions (AVCs) during your career, you should request an up to date statement of your contributions. You probably receive this on a half annual basis from your AVCs provider. If not, you will have to contact your financial broker who set up the AVCs for you.
5. Current PRSI Statement
If you have a public services card you can log on and download one straight away. Otherwise you can call 1890 690 690, choose option 3, ignore the prompt to go online and wait until someone picks up the call you can then request your statement and they will post it to you within 2 weeks.
6. Pension and Financial Review (Is it the right decision for you to retire?)
Once you receive these documents, we recommend having a financial review with one of our advisors if you have not already done so. If you are considering early retirement, this meeting can confirm if retirement is the correct move for you and your household now. During this review, we will advise you on: Your After-Tax Retirement Income, Protection Policies, Retirement Planning, Inheritance & Estate Planning and Lump Sum Investments. If you have been paying into AVCs during your career, we can advise if you could have a potential entitlement to a Partial Irish State Pension. Or if you haven’t paid into an AVC, we will let you know if you should do a last minute AVC to use tax laws to your advantage.
7. Retirement Paperwork
You can find the Ret. – P1 retirement paperwork online, through your employer or ask your financial advisor. This is an 8-page document which needs to be submitted to both your employer and board 3 months prior to your retirement date.
8. 12 Year Income Form
You will receive this from your Financial Advisor to be submitted along with your retirement paperwork, the department fill out your income details over the last 12 years and return the document to you. This will then be submitted to the insurance company your AVC is with after you retire and can potentially enable you to get extra cash out of your AVC tax free under Revenue rules.
Continuous Innovation: MadeSimple – Fully Online Financial Advice
MadeSimple is our new digital financial planning platform which innovates how financial advice is delivered to clients. We use technology to facilitate a more personalised and environmentally friendly financial advice service from the comfort of your own home. This has allowed us to remain accessible to our clients during the Covid-19 pandemic. Learn more about MadeSimple and get your complimentary financial and pension report.
Blog post contributed by Alan Buckley, Financial Advisor, MadeSimple at IPS Financial Advice
We are thrilled to be recognised by the Public Sector Magazine and patiently wait for our award to arrive and share photos with you.
Previous Awards include : LPI Best Broker Award 2016 and shortlisted for two awards at the 2019 LPI Financial Broker awards. The annual Life, Pension & Investment Broker Awards recognises Irish brokers who have proven their excellence and dedication in maintaining high professional standards in the Irish market over the past year.