Need some company pension advice? Then this article will help you.
Let’s admit it, increasing our pension fund is what we desire, to of course assure ourselves that we have sufficiently large amount of income on our retirement. It’s not that bad, who wants to reach his/her retirement age thinking that he/she still needs to work to have enough income to live properly.
And to do this, you can have Additional Voluntary Contributions or AVCs, which are money-making method that will increase your fund, if you are under a company pension scheme.
AVCs are more helpful to those who have started saving for pension mid-way and later on their careers and their lives. To make sure that they have larger funds, for more benefits that they and their love ones could enjoy, AVCs should be practiced.
AVCs’ advantages aren’t limited to their characteristic of building a higher pension fund, but it has also other advantages like:
- Chance of either varying the amount of payment or even stopping it.
- Tax relief on contributions, which certain limits are under Pension Rules of April ’06
- In most cases, administration charges are much lower compared to investing onto a separate scheme.