There has been a lot of talk recently about the adequacy of pensions and whether people will have enough

in retirement. AVCs are a great way to enhance your retirement income. They are extra contributions you make

alongside your existing company pension plan to help increase the value of your final pension fund. Join today and benefit from some real advantages.

Advantages of AVCs

  1. Income Tax Relief: It may cost less than you’d think, thanks to income tax relief Contributions to an AVC scheme qualify for tax relief. AVC contributions are taken directly from your salary and are deducted before income tax is applied – this means you get a great tax benefit. The table below shows the tax relief available on a monthly AVC of €100
    Example 40% Tax Payer 20% Tax Payer
    Monthly payment €100 €100
    Actual cost to you (€60) (€80)
    Tax saving per month €40 €20
  1. Growth: You pay less tax than you’d think on the investment growth The Pension Funds that you invest in are exempt from tax*. As such, they are not subject to Capital Gains Tax and Income Tax. This ensures the maximum possible growth for your pension contributions. And another great advantage is you can choose the type of Pension Funds that suit how much risk you want to take with your retirement fund.
    * Withholding taxes may be deducted at source from dividends and other income arising from investments in certain countries in which the funds invest. In most cases, part or all of these withholding taxes can be reclaimed, but where they cannot, the income of the funds will be reduced by such taxes.
  2. Choice: You get more choice on using the retirement fund you’ve built up. An AVC scheme can increase your projected pension benefits so you’ll have more options on how to plan for your retirement. With an AVC you can:
    • Take a further retirement lump sum in addition to what is available from your main pension scheme, some of which may be tax free.
    • Take a further taxable lump sum.
    • Add to your pension so you can get a higher income in retirement.
    • After maximising your retirement lump sum, transfer any remaining fund to an Approved Retirement Fund (ARF) / Approved Minimum Retirement Fund (AMRF).

These options are subject to Revenue limits. Full details