Important points to consider before you increase your AVC contributions
- Your new AVC contributions will be invested using the same investment strategy/funds as your current AVC Plan.
- If your AVC is with Irish Life then your new ‘projected fund at retirement’ will be reflected in your next AVC Benefit Statement. As there are certain Revenue regulations which govern how you can use your AVC Plan to buy benefits when you come to retirement, please make sure that you read your next AVC Benefit Statement carefully to ensure that your AVC Plan will deliver the benefits you are targeting for it.
- The value of your AVC Plan can fall as well as rise in value and may at any time be less than the amount invested.
- You must ensure that your contributions to your AVC Plan do not breach the maximum limits set by Revenue - see below for details. In calculating whether you have reached the maximum limit allowed you must take into account any contributions to: the Superannuation Scheme (and, if relevant, Spouses’ and Children’s Scheme) any other pension arrangement you may be contributing to (Purchase of Notional Service, Personal Retirement Savings Accounts etc.) and any employer sponsored facility such as the repayment of Marriage Gratuity, Purchase of Service Training/Temporary years, etc.
- If you’re anticipating retiring within the next 7 years you need to consider carefully whether your AVC Plan top-up will represent value for money given the relatively few years remaining to retirement.