Many years ago I asked a more experienced colleague about AVCs. I will give you three pieces of advice he said; do them, do them, do them! Fortunately, I listened.
In County Laois we have a vast array of different public sector employments and hence pension arrangements. These are in a variety of different roles, such as teachers, health service employees, civil servants, gardai, prison officers, our local authority and some non- commercial state bodies. In our thoughts this week we examine
- What are AVC’s and Why those who are employed in the Public Service make them?
When you retire from the Public Sector you receive two benefits
- a pension of up to 1/2 your pensionable salary (generally accrued at 1/80th for each year of service… (A Rate PRSI is different))
- a lump sum of up to 1.5 times your pensionable salary (generally accrued at 3/80ths for each year of service)
AVCs are Additional Voluntary Pension Contributions made by members of employer sponsored pension arrangements to boost their retirement benefits. Whilst each individuals circumstances are unique, the following are the main reasons we have found at Peavoy Financial Planning as to why AVC contributions are made
- There is a difference between the Revenue Maximum Allowable Benefit & the Benefits from the Main Superannuation Scheme
- You are not happy with a 50% reduction in your income (best case scenario)
- You want to retire early
- You have missed some years service
- You started working late in the Public Sector
- You took a career break
- You took some time out to raise a family
- You would like to save more Tax
- You reduced your hours and won’t have full service as a result
So what next?
If any of the above apply to you have a chat with your Financial Adviser to work out how to go about filling the gap in your specific case. Next week we will look at how we advise on AVC’s at Peavoy Financial Planning and the avenues you have to make AVC contributions. In the meantime, if you are based here in Laois and are looking for some advice locally in relation to your pension, please do make contact with me and I will work through your current situation with you. I can be contacted on 087-2902206 or alternatively by email on email@example.com
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