Recommended retirement income
It is generally recommended that you aim for a pension of two thirds of your final salary at retirement. So, you may need to make Additional Voluntary Contributions to your pension to achieve this level.
Years of service
You may have joined the scheme relatively late in your working life and may not qualify for the maximum benefits under the scheme. If this is the case, you can enhance your benefits at retirement by making AVCs.
Cost of living
You may also wish to provide for increases in your pension to keep pace with the cost-of-living increases during retirement.
How much tax relief will I get?
The current tax benefits from the Government make this more attractive than any other form of saving. For instance, if you paid €100 into an AVC each month the actual cost to you could be only €60.
By investing in an AVC, there is the widest possible choice of benefits at retirement – so you can choose what suits you best.
- A tax-free retirement lump sum
- A regular income for life
- Invest your fund in an Approved Retirement Fund (ARF) giving you greater flexibility and control over your AVC fund in retirement
- Take your AVCs as a taxable lump sum
- A combination of the above