AVCs are extra pension contributions
Additional voluntary contributions, or AVCs, are extra contributions you may choose to make on top of normal workplace pension contributions.
People often use AVCs to increase retirement savings, make use of tax relief, or build more flexibility for retirement. The exact options depend on the pension scheme and Revenue rules.
AVCs are still pension money, so they are usually tied to pension access rules. That means they can be powerful for retirement planning, but they are not the same as ordinary savings you can access whenever you want.
Before making AVCs, it is worth understanding charges, investment options, tax relief limits and how the AVC pot may be used when you retire.
What to check first
- Does your scheme allow AVCs?
- What tax relief applies to your contribution?
- What investment funds are available?
- Are there policy or fund charges?
- How will AVCs be treated at retirement?