We should all recognise 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 40* 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?
Read more about our options or talk to a qualified financial advisor today about boosting your pension.
1. Present day value of pension payable in retirement. The pension available from the company pension plan assumes a total contribution of 15% of the gross annual salary to a defined contribution pension scheme. Salary is projected to grow at 3% p.a. and the investment return on the pension fund is assumed to be 6% p.a.
2. Present day value of AVC pension payable in retirement. The premium required (gross of tax) to provide €13,784 p.a. pension from an AVC is €525.85 per month (€310.25 per month after tax relief at 41% where applicable). Contributions are projected to grow at 3% p.a. and the investment return on the AVC fund is assumed to be 6% p.a.
*Assuming higher rate taxpayer 40% 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 0.15% will be applied to the value of the pension assets for the year 2015.
