My question is why a 32 year old is contributing AVC’s? Which public sector scheme are you in?
AVC’s are a very tax-effective method of increasing your retirement benefits. BUT:
- if you are in the traditional DB Scheme with full service(?), what will be the shortfall between your expected DB benefits and the Revenue maximum allowable benefits.
- if you are a member of the new Single Scheme (a hybrid mix of DC and DB) then you still need to estimate whether the projected benefits still fall short of the Revenue maximum (not an easy calculation).
So I would ask whether Cornmarket estimated your main scheme benefits and calculated the possible shortfall, thus allowing for AVC’s. But I would question a 32 year old contributing AVC’s (as opposed to perhaps paying down a mortgage). With your likely years of service it might be more sensible to defer making AVC’s until say late 40’s when the scope for AVC’s (a better estimate of the potential shortfall between the main scheme benefits and the Revenue maximum).