AVCs - The Basics

As a member of your employer’s pension scheme, you have taken the important first step towards providing an income for your retirement.

Throughout your working life, it is important to review your pension contributions regularly, to ensure that you are saving enough to fulfil your retirement goals.
 

If you find there are any shortfalls in your pension savings or if you want to boost your income in retirement an AVC (Additional Voluntary Contribution) could be the right thing for you.
 

An AVC is a tax efficient, optional payment designed to enhance your benefits and give you greater options at retirement.

AVC – THE BENEFITS OF TOPPING UP YOUR RETIREMENT PLAN

• Generous tax relief
• Maximise your tax-free lump sum
• Provide a higher pension income
• Make financial provisions for your dependants
• Have greater flexibility and control over your fund at retirement

AN AVC IS STILL ONE OF THE MOST TAX EFFICIENT WAYS TO SAVE FOR YOUR RETIREMENT

• Tax relief: You can normally claim up to 49%* tax relief on your contributions to your AVC plan.
• Tax-Free Growth: Under current legislation the money you contribute is allowed to grow tax-free.
• Tax-Free lump sum: Part, or in some cases all, of your fund may be taken as a tax-free lump sum at retirement.

_{*Assuming higher tax rate payer (41%) plus 4% PRSI and 4% Health Levy. Tax relief is not automatically guaranteed. You must apply to the Revenue and satisfy their requirements.}