CJR Associates Avc's

AVC stands for Additional Voluntary Contribution relating to a 'top up' to a company pension scheme.

You can only take out an AVC if you are a member of a company pension scheme.

Most companies offer employees an 'in house' AVC , which is often subsidised.

You can also take out a 'free standing' AVC with most insurance groups and some other providers.

Both types of AVC are subject to limits:

Costs and charges vary between providers however, the lowest cost plan is not always the best, as investment performance could make up for any cost difference between providers.

The best advice is to allow your independent financial adviser to recommend the most suitable plan for you.

You may also wish to consider a tax free savings schemes such as an ISA to build up as lump sum for retirement.

You cannot pay more than 15% of your salary to an AVC.
You are not allowed to exceed the maximum benefits provided by your scheme, ie: 40 years of service.

Overfunding
It is common for people to "overfund" ie exceed the maximum benefits allowable under the pension scheme rules.
This may lead to a large percentage of your pension fund being reclaimed by the Inland revenue.

Best Advice
Is always to seek the help of your Independent Financial Adviser before effecting any type of A V C plan.

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