Thousands upon thousands of public sector workers in Ireland are using Additional Voluntary Contributions (AVCs) to boost their retirement the smart way – often adding tens of thousands of euro to their tax‑free lump sums. The following are not projections; they are real outcomes for real public sector employees.
Over the last three years alone, more than 6,000 AVC members drew down their AVC benefits at retirement. In that time*:
· over €358 million was paid out
· the average member increased their tax‑free lump sum by more than €23,000 through their AVC.
When you look at these numbers, one thing is clear: AVCs are becoming a central part of how public sector employees are boosting their retirement the smart way, by using the tax system and their pension options to their full advantage.
What our data is telling us about AVCs
With over 50 years’ experience servicing the financial needs of public sector employees, we have a uniquely detailed picture of how AVCs are actually used in practice – not just how they are supposed to work in theory.
Over the three years from 2023 to 2025:
- 6,129 AVCs were drawn down at retirement
- €358.4 million was paid out in total
- A sizeable share of this was taken tax‑free as part of members’ retirement lump sums
- On average, members increased their tax‑free lump sum by over €23,000 using their AVC
Year by year, it breaks down as:
- 2025 2,072 AVCs settled €124.4 million paid out in total €47.1 million paid out tax‑free
- 2024 2,130 AVCs settled €119.2 million paid out in total €50.6 million paid out tax‑free
- 2023 1,927 AVCs settled €114.8 million paid out in total €44.8 million paid out tax‑free
Seen at scale, it is clear indicator that AVCs are not a niche extra – they are a major part of how public sector workers are boosting their retirement and turning regular contributions into meaningful, often tax‑free, retirement benefits.
Why AVCs matter so much for public sector workers
Many public sector employees assume that their main public service pension and lump sum will “look after itself” and that AVCs are optional extras.
Our data suggests something very different:
- A growing number of retirees are actively using AVCs to shape their retirement package.
- AVCs are being used very specifically to: Boost the tax‑free lump sum at retirement Provide additional income in retirement Add flexibility around retirement timing and options
For many members, that additional €20,000–€30,000 (and often more) in a tax‑free lump sum can mean:
- Clearing or reducing a mortgage
- Helping children with education or housing
- Having a financial buffer in the early years of retirement
- Simply having more choice in how and when to step back from work
This is what maximising funding for retirement looks like in practice: using AVCs to turn today’s tax relief and contributions into tomorrow’s options and flexibility.
Unique insight into public sector finances – not just generic pension talk
A lot of information you see about pensions is very general and often geared towards private sector or personal pensions. Public sector schemes are different – and AVCs for public sector workers are very different to a standard private pension top‑up.
This is where our experience and data really stand out.
Because we are dedicated to servicing such a large public sector AVC membership, we have:
- Detailed, real‑world outcomes on how public sector AVCs are actually used at retirement
- A deep understanding of: Superannuation rules Integration with public sector pension and lump sum calculations Revenue rules on tax‑free lump sums and tax relief on contributions Nuances for different public sector groups (health, education, civil service, local authorities, semi‑states)
In other words, we do not just talk about AVCs in theory – we see, every week, how they interact with real public sector pay, service, and retirement decisions.
That insight is what allows us to help members – not with generic pension tips, but with advice grounded in public sector rules and real data.
The power of tax‑free planning
One of the most striking findings from our data is just how much of the AVC pot is being used tax‑efficiently.
Across the three years:
- Tens of millions of euro each year have been taken out completely tax‑free as part of retirement lump sums.
- The average member has increased their tax‑free lump sum by over €23,000 thanks to their AVC.
That is money that has:
- Gone in with tax relief (you got income tax relief on your contributions), and
- Come out tax‑free (within Revenue limits) as part of your retirement lump sum.
For public sector workers, this combination of upfront tax relief and tax‑free benefits at retirement is one of the most powerful financial planning tools available – but only if you use it.
This is a core part of boosting your retirement fund: understanding the tax rules, knowing your limits, and structuring your AVC so more of your money works for you, not the Exchequer.
What does this all mean?
If you are a public sector employee, our data points to three key takeaways:
- AVCs are already making a big difference Thousands of your colleagues have already used AVCs to significantly increase their retirement lump sums and income
- There is real money at stake An average boost of over €23,000 tax‑free is not a small top‑up. For many, it is the difference between “managing” and feeling genuinely comfortable in early retirement
- Personal details matter Your age, service, salary, existing pension benefits and retirement plans all affect: How much you can contribute with tax relief How much extra tax‑free cash you could generate Which AVC options make the most sense for you
This is where our unique experience and data on public sector AVCs gives us a real edge in guiding you, based on your own figures rather than generic assumptions.
Our Insights, Your Outcome
We have seen the numbers. We know how AVCs are being used in practice across the public sector.
Our advisers use real public sector data and real retirement outcomes – like the figures above – to help you put a plan in place that reflects your actual entitlements and options.
If you would like to arrange an information for your employees or workplace, we would be delighted to share our insights to help your team:
- Understand how much additional tax‑free lump sum they could build,
- See how their own figures might compare to the average AVC outcome, or
- Get clarity on how AVCs fit with their specific public sector scheme.
Simply contact us today on (01) 420 6766 or mail mastertrust@cornmarket.ie
Because when it comes to AVCs, you are not just saving more – you are choosing to use some of the most powerful tax and pension tools available to public sector workers in Ireland.
*Source: Irish Life based upon 6,129 AVC members who settled their AVC in 2023, 2024 and 2025.
Author: Keith Cooke, Master Trust Operational Manager, Cornmarket.