In a nutshell – AVCs boost the money you will have in retirement!

By now you’ve probably overheard someone talk about Additional Voluntary Contributions (AVCs). But do you know what they actually do or if they are relevant for you? As your Public Sector financial experts we’re going to demystify some of the most common myths about AVCs:

Myth 1: Do I really need an AVC if I already have a pension?

Buster: To have a better pension..  Yes!

Let’s take a look at two Public Sector employees to see what pension they will get if they retire at 60 years of age, on a salary €60,000, with 35 years’ service:

  • Kim joined the Public Sector in 2010 and will receive an annual pension of €11,000*until age 68.
  • Paul joined the Public Sector in 2003 and will receive an annual pension of €26,000*until age 68.

Both Kim and Paul's annual income will be much less than what they were earning before retirement.  They could supplement their pension with an AVC!

Myth 2: An AVC is just another way to save

Buster: An AVC allows you to use your tax relief to save for retirement – so you get a lot more for your money!

For every €100 you put into your AVC you will receive €40 in tax relief** – this means your investment will only cost you €60!

Myth 3: I’m too young to even think about AVCs!

Buster: 50% of our clients start an AVC before they are aged 35!***

Find out how you can make more money with less by starting early:

Starting early: Our members retire on average 6 years before the State Pension age!**** By taking out an AVC you could do the same!

Myth 4: I’ll never be able to keep up the contributions

Buster: You can stop, start, increase and decrease your AVC whenever you like!

AVCs are designed to be flexible for you so you can stay in control.


*Figures have been rounded to the nearest thousand. **Assuming tax relief at 40% ***Source: Cornmarket 2019, based on an average starting age of Cornmarket AVC Members. ****Cornmarket customer average member retirement age 60 in 2017