Meet Eamonn and Dearbhla who are young teachers who recently discussed with us why they invested in their futures with Additional Voluntary Contributions (AVCs).
Starting their AVCs
What age were you when you took out your AVC & why did you decide to take out an AVC?
Eamonn: I set up my AVC when I was 28 because I was thinking about my future financial plans. I’m a teacher on the post 2011 payscale so had heard that the pension wasn’t anywhere near as good as it used to be.
Dearbhla: I was 32 when I set up my AVC. I set it up because Eamonn convinced me to talk to someone about retirement. After speaking to an advisor from Cornmarket it seemed a no brainer.
Where did you hear about Cornmarket and the AVCs that we offer?
Eamonn: Cornmarket did a presentation in the school I was teaching in over a lunchbreak. I then arranged a meeting with an advisor who came to my home to discuss AVCs.
Dearbhla: My Dad would have had an AVC and had mentioned the benefits to me as he retired early.
What was setting up an AVC like for you and if you needed assistance, was Cornmarket there to help you?
Both: Yes, our Cornmarket advisor was very helpful and good at explaining things. He made the process very straightforward. If I had any questions he was always there to help.
Benefits of an AVC
AVC Schemes administered by Cornmarket offer benefits that are exclusively available to Public Sector employees.
Two of the most attractive aspects of an AVC are the tax relief that’s applied to the contributions that you pay… so the ‘real’ cost to you is less than what you actually think and also the fact that your AVC is deducted from salary!
Are you aware of the Tax Relief that’s applied to your contributions?
Both: Yes, the tax relief made taking it out a no brainer.
Is the tax relief on your AVC an important benefit for you?
Both: Yes, it’s great and maximises our income.
Are you aware that your contribution is deducted directly from your salary?
Both: Yes, it’s very convenient, you don’t have to think about it at all once it’s set up.
Are there any other benefits of an AVC that are important for you?
Both: Just the knowledge that I’m looking after my financial future rather than having money sitting in the bank depreciating.
People are living longer
Nowadays people are living up to 2-3 decades after retirement, meaning they have more years in retirement than ever before.
Have you thought about what type of retirement you would like?
Both: We would like a comfortable retirement with the opportunity to travel and enjoy life.
Would you like to be able to really enjoy those years without any financial worries, instead of just ‘getting by’?
Both: Yes, we want to be comfortably off and not having to worry about our spending too much. We will have worked hard enough for it!
Will your AVC help you to build your ideal retirement?
Both: Yes, we believe our AVCs will help to build our ideal retirement.
Building your ideal retirement
Do you think it’s important to start an AVC as early as possible?
Both: Yes, when it was all explained it just makes good financial sense (for us). We won’t have the benefit of the good pension our parents’ generation are used to, so it really is worth doing even if it’s a small amount from your salary to begin with.
Why do you believe an AVC is the right choice for your future?
Both: The tax relief, being deducted directly from salary so you don’t have to think about it, the low risk, seeing your money work for you and the added bonus of a lump sum at the end to kick start your retirement. Also just the peace of mind that we’re looking after our financial future.
Why would you recommend taking out an AVC to others?
Both: We don’t think people our age are fully aware of how their pension has been affected compared to their parents’ generation. Taking out an AVC just makes good financial sense if people want a comfortable retirement.
Your feedback in relation to Cornmarket has been very positive. Would you recommend Cornmarket to others?
Both: Yes, they are professional and very knowledgeable. It was also very convenient to do the video consultations. The agents were very good at explaining how the AVCs work
Why an AVC may be right for you