Local Authority Employee AVC vs. PRSA AVC

T

Tetrarch

Guest
Excuse my ignorance but what is the difference between an AVC and a PRSA AVC?
I will retire with my full pension and lump sum, what are the advantages of contributing to either of the above?
Am I right in assuming that the max. lump sum of 1.5 times salary cannot be supplimented by the 25% lump sum avilable from AVC/PRSA AVC?

Regards,
Con.
 
Hello Con,

An AVC would be invested in a fund set up by your employer's nominated broker. You would choose your fund from the range available. An AVC has the advantage that it is deducted from salary and therefore tax and PRSI relief is granted immediately.

You can arrange a PRSA AVC with any PRSA provider or broker of your choice, so you've a wider choice. You may be able to obtain one with lower charges than an AVC. Contributions are paid gross by Direct Debit from your bank account and you claim back your tax and PRSI relief.

There's no difference in terms of tax relief or retirement benefits between an AVC and an AVC PRSA.
 
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