Sinead is a 60 year old, single, teacher with no dependents who retired in August last year. Having heard about our services for retirees and prospective retirees through a former colleague, Sinead contacted us last July about what to do with her gratuity after she retired.
Although her post retirement situation was her key priority when we first met with Sinead, as part of our background work with her we undertook a comprehensive review of her existing personal financial situation. From this we identified that due to a period of overseas work earlier in her career, Sinead was only going to have 34 years of pensionable service at retirement, which was leaving her with a significant shortfall in her post-retirement income as the maximum benefits are based on 40 years of service. Taking into account her tax record, and the funds available to her in savings, we then pointed out to Sinead that she could execute a Last Minute PRSA AVC before retirement to ensure she retired with the maximum gratuity, while also availing of a 41% tax rebate on her contribution. We then arranged this for her and also claimed the tax refund due of approximately €7,000, thereby boosting the funds available to Sinead in retirement. In addition, as she had requested, we also identified a suitable home for the majority of Sinead’s gratuity after her retirement in keeping with both her risk profile and her requirement to be able to access her funds.
Result: Not alone is Sinead now safe in the knowledge that she has taken prudent steps with her gratuity to protect herself in her retirement, but in addition she has also now received a tax rebate of over €7,000 which she has been able to put to good use in changing her car which she had initially expected to have to use some of her gratuity to do.