Most individuals who work in the Public Sector can boost their retirement benefits by making Additional Voluntary Contributions to their pension, as there is often a difference between the Revenue Maximum Allowable benefits and the benefits attainable from their Superannuation Scheme.
In last week’s blog we looked at “What are AVCs” and “Why it is a good idea to do them?“. This week we expand on this further and discuss what options Employees have when making AVCs and how we advise on AVCs at Peavoy Financial Planning.
There are generally two options open to most who work in the Public Sector when making AVCs.
They can contribute to either a Group AVC arrangement set up under trust through their Employment OR alternatively to a personally owned PRSA AVC set up on a separate Stand Alone basis. The options available to both arrangements at retirement are identical and both must be matured at the same time you are retiring from your Superannuation.
At Peavoy Financial Planning we work alongside our AVC clients and assist them right through the advice and decision making process. The following are the main steps we go through
- We work out with you your service history
- Explain how superannuation works
- Explain how superannuation works in your circumstances
- Identify shortfalls
- We agree on your opportunity
- Explain the options you have
- Explain the scope for extra contributions
- Explain tax relief
- Identify the maximum contribution you can make
- Agree a level of affordability to contribute
So what next?
To educate yourself on the opportunities that come with an AVC arrangement, have a chat with your Financial Adviser and work out how to go about filling the gap in your specific case.
If you would like to have a chat with me here at Peavoy Financial Planning please do make contact with me and we will work through your current situation with you. I can be contacted on 087-2902206 or alternatively by email on david@peavoyfinancial.ie
David Peavoy BA, QFA, LIAP is the Owner of Peavoy Financial Planning whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.
David Peavoy T/A Peavoy Financial Planning is regulated by the Central Bank of Ireland
Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning makes no representations as to the accuracy. completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use
