Additional Voluntary Contribution
We should all recognize the importance of saving during our working lives in order to provide a decent income in retirement. By reviewing your pension contributions regularly you can identify if you are saving enough to fulfil your retirement goals.
If you want to boost your pension savings to provide a greater income in retirement an AVC PRSA could be the right option for you. It’s one of the most tax efficient ways to put away extra savings to secure a comfortable lifestyle in retirement.
AVCs – The Benefits To You
Generous tax relief available.
Maximize your potential tax-free lump sum at retirement.
Provide a higher pension income when you retire.
Make better financial provisions for your dependents.
Have greater flexibility and control over your fund at retirement.
An AVC is one of the most tax efficient ways to save for your retirement
Tax Relief -You can claim up to 41%* tax relief on your contributions to your AVC plan.
Tax Free Growth**: The fund in which your contributions are invested benefits from tax free growth, unlike most other saving methods which are liable for tax.
Tax Free Lump Sum: A portion of your fund may be taken as a tax free lump sum at retirement, subject to Revenue rules.
Will you have enough income when you retire?
*Assuming higher rate taxpayer 41%. It is important to note that tax relief is not automatically guaranteed; you must apply to and satisfy Revenue requirements. Revenue terms and conditions apply.
**A temporary Government pension fund levy of 0.6% per annum will be applied to the value of the pension assets for the four years 2011 – 2014.