Starting Out
Registered User
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- 52
Hello,
I have a query with regard to my current contribution levels towards AVCs in my occupational pension plan.
Every pay week I currently make a contribution equal to 5% of pensionable salary towards our company’s defined benefit scheme. This is a private sector defined benefit scheme with no allowance for cost of living increases post retirement. For this reason I decided late last year to begin contributing AVCs on top of my standard contributions. I am currently contributing €35 gross each week as AVCs (a little less than the 5% I'm already contributing). I also probably will not be with my current employer for the rest of my career and don’t anticipate being able to avail of a defined benefit scheme forever so this is another reason I’ve decided to start AVCs when I am able to afford to.
I am now considering increasing my level of AVC contribution to mitigate against the risk of tax relief changes in the forthcoming budget. Whenever I check about establishing AVCs however it references getting further financial advice. Up to know I have not done this but decided to check with this forum for any thoughts / advice. I am wondering if there is anything else I should be aware of before deciding to increase my contributions?
I realise this level of AVC is high considering my age but I am in a position currently where I can afford to make these contributions so would rather avail of any higher levels of tax relief while available and reduce the cost of funding this. Based on my age (27) I can contribute up to 15% of this as pension this year.
Thanks,
Starting Out
I have a query with regard to my current contribution levels towards AVCs in my occupational pension plan.
Every pay week I currently make a contribution equal to 5% of pensionable salary towards our company’s defined benefit scheme. This is a private sector defined benefit scheme with no allowance for cost of living increases post retirement. For this reason I decided late last year to begin contributing AVCs on top of my standard contributions. I am currently contributing €35 gross each week as AVCs (a little less than the 5% I'm already contributing). I also probably will not be with my current employer for the rest of my career and don’t anticipate being able to avail of a defined benefit scheme forever so this is another reason I’ve decided to start AVCs when I am able to afford to.
I am now considering increasing my level of AVC contribution to mitigate against the risk of tax relief changes in the forthcoming budget. Whenever I check about establishing AVCs however it references getting further financial advice. Up to know I have not done this but decided to check with this forum for any thoughts / advice. I am wondering if there is anything else I should be aware of before deciding to increase my contributions?
I realise this level of AVC is high considering my age but I am in a position currently where I can afford to make these contributions so would rather avail of any higher levels of tax relief while available and reduce the cost of funding this. Based on my age (27) I can contribute up to 15% of this as pension this year.
Thanks,
Starting Out