Pension Schemes

[quote=“dancarter”]Anyone who can afford private health insurance, that doesn’t have it, needs their head read.

Needed an op there a few years ago, went to the doc on monday, consultant wedns, op the following Monday. Without the insurance it would have cost me up to 10 k and Id still be waiting probably[/quote]

Absolutely, serious risk not covering yourself I reckon.

As for a pension, I’d have thought a buccaneer like Bandage wouldn’t bother with one and hope to croak it on his 65th birthday.

Ah feck it I’ll go with the VHI Plan A option so.

I think I’m on Plan B option but don’t know much of what it entails. I do know in my first year on the VHI (on my own) I had complications with a wisdom tooth and had to get an operation to get it removed. I was able to claim it back on the VHI and the cost came to 10 more than what I had paid in premiums that year, so after turning a profit in the first year I’ve stuck with it since but unfortunately I’d say they are well ahead of me at this stage. They are like Paddy Power Poker, they’ll suck you in with a couple of small wins but before you know it you’ve it all given back and some.

You’d really ride them if you got say cancer, Pukey.


Sad to see 8 years have passed since this thread has been added to…it shows the kind of maverick who resides here…clearly they expect to be wearing the wooden overcoat by pension age after a life of debauchery. .one question…why is state pension so enticing? And if I have interpreted right then why doesn’t every professional not hop across to civil service at a late stage of their career on a nice wage to secure their million euro pension?@rocko and financial experts please advise…

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You need 40 years service to retire on full pension. You get a 1 year worth of salary lump sum and half your salary per year thereafter. Before changes a few years ago your pension was based on the salary you finished on, but now it’s an average over the 40 years. Loads of auld boys used to take a better job for the last few years to bump it up but not the case any more.

If you only have say 20 years service you get 1/4 salary in your pension so it’s worth fuck all unless you have the years build up.

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Because you must build up your service longer service more pension.

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@Julio_Geordio is the pensions expert around here. Well he gave me some decent advice not so long ago anyhow

The state pension is so enticing because;

  1. It’s Government Guaranteed
  2. It’s incremental so if someone doing your old job gets a payrise your pension goes up as well
  3. It’s defined benefit, i.e. it doesn’t matter a fuck how stock markets etc. have performed over your lifetime you get the same pension pot. Very few private companies have DB schemes anymore, they were way too expensive, a few of the older generations have them still but the ladder is well pulled up now.
  4. It’s completely disproportionate to the amount you put in, the recent pension levy addressed this somewhat but they’ll row that back again no doubt.

As for why doesn’t everyone do it.

  1. If you ever look at the higher up Civil Service jobs they generally require you to be a grade 7,8,9 or whatever, meaning you’d have had to work your way up to there, you can’t just move over later in your career. Essentially lifers get to the top.
  2. A lot of people couldn’t be arsed handling the politics/bureaucracy of those roles
  3. The civil service is where ambition goes to die.
  4. The pension is incremental based on years service.

As with all these things the young chaps in the CS will get screwed at retirement because we won’t be able to afford it.


My old employer tried to wind theirs up. A colleague of mine with long service got close to 1m euro lump sum payment to a new DC scheme to buy him out of the DB such was the contingent liability.


They were a pure pyramid scheme. Crazy expensive.

That never happened

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Is there ever a scenario where actually it isn’t disproportionate due to the fact you have being contributing for so long at the one grade and then retire at that grade? …
state pensions model is not sustainable and like you said needs to change but no government will do it as it wud be political suicide…so it will just break in the end… there’s a bigger issue with pensions in general and how few people have them even though everyone is living longer…throw in the contract of service v contract for service conundrum and it’s a ticking time bomb across the board…

It’s always disproportionate as they don’t put any money into it. Even if you stay at the same grade you’ll get incremental pay rises and general pay rises as you go through your 40 years or whatever so at the end you’ll always get out more than you put in. You’re inflation protected and investment return protected its the dream scenario. The money won’t be there to pay the younger crowd going through now though.

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lovely post there
good to have you back pal

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Why so?

It equated to about 12 years of what his annual DB payout would have been including the lump sum on retirement of 1.25 times final salary. An actuary advised him against taking it they got away with murder.

For high earners with long service the DB is absolute carnage for the employer

I was going to say, I’d much rather the DB than a million quid pension.

Agreed. Main reason he took it, poor health history in family he wasn’t looking to gamble on how long he would live. Plus he had a fair idea he would be offered vol redundancy and could throw the money into an ARF. Some other tax reasons too

A million euro of a pension pot will buy you an annual income of 30k, which will be subject to income tax and whatever other cunt of a levy they come up with. Max pot you can have is 2m which will buy you 60k. Anything over that they as good as rob off you.

The tax advantage to a personal pension plan is fairly marginal now and with the fees and so on it’s close enough to being better off having your savings in a more accessible pot. I’d never advise somebody not to have a pension but I’d certainly keep an eye on the alternatives.

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