Additional Voluntary Contributions with GSB Capital Ireland
As you look ahead to retirement, one of the smartest financial moves you can make is to take greater control of your future. An AVC Pension (Additional Voluntary Contributions) allows you to do just that.
A lot of people are familiar with making Additional Voluntary Contributions to their existing workplace scheme. What you can also do is make these contributions privately to any provider you choose. This offers the same tax benefits of using your workplace scheme: increasing retirement income while enjoying attractive tax benefits along the way, but also allows more control for you and more fund options – allowing extra possibilities to personalise this to your overall asset base, when you might want to take money and what risks you can, or can’t afford to take. You might want to be more aggressive than your main pensions, or ultra cautious, it all depends what your own finances need. Whether you’re looking to retire early, build a bigger pension pot, or simply make the most of your earnings, AVCs can help you get there faster.
If you are a top rate tax payer, €500 per month in contributions only costs you €300. Yet you have €500 invested and growing and working for you.
At GSB Capital Ireland, we don’t just offer AVC advice – we provide comprehensive pension planning services to help you make the most of every aspect of your retirement strategy. From reviewing your existing pension arrangements to identifying tax-saving opportunities and optimising your contributions, we’re here to guide you at every step. In fact, we recently helped one of our clients save €9,200 in annual income tax through a tailored pension planning solution.
Whether you’re just getting started or looking to fine-tune your existing setup, our expert team will recommend the most suitable options for your goals.
Benefits of investing in an AVC Pension
AVCs offer several compelling advantages that can make a real difference to your retirement outlook.
Tax Relief
One of the most appealing features of AVC contributions is the generous tax relief available. Depending on your income and age, you can receive up to 40% back in tax relief on every euro you contribute. For example, if you contribute €200 a month and you’re in the higher tax bracket, the actual cost to you would be just €120. Over the course of your working life, this can significantly boost your pension pot with minimal impact on your take-home pay.
Option to Retire Early
AVCs can also help bring your retirement plans forward. If you’ve built up a strong pension base but want to finish work a few years earlier than expected, your AVC fund can provide that added buffer. Many use AVCs to bridge the gap between early retirement and the official pension age, helping maintain their lifestyle while covering essential costs in the interim. It’s an ideal route for those with a clear retirement vision.
You Decide How Much You Invest
AVCs are designed with personal flexibility in mind. You can contribute as much or as little as you like (within Revenue limits), and you’re free to adjust or pause contributions whenever your circumstances change. Whether you’re saving aggressively in your 40s or topping up in your 50s, you are entirely in control of your pension and your future.
You Choose Which Option Suits You Best
When the time comes to access your AVC Pension, you’ll have a range of options to suit your retirement goals. From taking a tax-free lump sum to purchasing an annuity or transferring to an Approved Retirement Fund (ARF), you can shape your income in a way that reflects your needs. This flexibility ensures that your retirement income aligns with how you want to live.
Contact Us For A Free Initial Consultation
How to get started with Additional Voluntary Contributions
Getting started with AVCs through GSB Capital Ireland is simple, efficient, and tailored to your goals:
Schedule a Consultation
Fill in our contact form, send us an email or give us a call. Our expert advisers will take the time to understand your existing pension scheme, long-term goals, and eligibility.
Review Your Pension Position
We’ll assess your current pension contributions and identify opportunities to enhance your benefits with AVCs.
Plan Your Contributions
Together, we’ll determine the most tax-efficient contribution strategy, including how much to invest and how often.
Choose Investment Options
We’ll help you select a portfolio that reflects your risk tolerance, time horizon, and retirement targets.
Ongoing Management & Support
As your situation evolves, our team is here to review, adjust and optimise your AVC plan over time.
AVC Pension FAQs
An AVC Pension is a voluntary top-up to your existing occupational pension scheme, allowing you to increase your retirement savings beyond the standard employer and employee contributions. It is set up through your pension provider or broker and offers flexibility in terms of how much you contribute and how your funds are invested.
Because AVCs qualify for tax relief, they’re a powerful tool for those who want to maximise their pension income in a tax-efficient way. If you’re unsure how AVCs fit into your current pension setup, GSB Capital Ireland can help you review your options.
For many people, the answer is a resounding yes. AVCs are incredibly valuable for anyone looking to enhance their retirement income, reduce future tax liabilities, or even retire early. The upfront tax savings, combined with long-term compounding, mean you could end up with a much larger pension pot than if you simply relied on standard contributions alone.
They are especially worthwhile if you’re approaching retirement and want to close a shortfall in your pension or increase your tax-free lump sum. Every situation is different, so it’s best to speak with a professional to understand your personal potential.
While AVCs offer strong benefits, it’s important to understand the potential drawbacks:
- Access is restricted: AVCs are typically only available at retirement age or in specific circumstances, such as serious illness.
- Investment risk: Your returns depend on how your funds perform, so there’s no guarantee of growth.
- Revenue limits: There are caps on how much tax relief you can claim, based on your income and age.
That said, with proper advice and planning, AVCs can still be a very effective part of your overall retirement strategy.
Generally, you cannot access AVC funds before age 60. From 50, if you have stopped working altogether you can retire an AVC. AVCs are designed to provide for your future, so early access is heavily restricted under Irish pension law. There are some exceptions if you are seriously, fatally ill.
However, many people use AVCs to access tax-free cash at retirement, or to fund early retirement from age 50 onwards if certain conditions are met. If you’re unsure about your access options, get in touch with our team for tailored guidance.
How much you contribute depends on affordability, your personal goals, age, income, and the gap between your projected pension income and your desired lifestyle in retirement. Revenue rules allow contributions up to a certain percentage of your salary based on your age (similar to PRSA limits), with a maximum earnings cap of €115,000.
Our advisers at GSB Capital Ireland can help you determine an amount that’s affordable now and impactful over the long term to ensure that your money is working hard for your future.
At retirement, you have several options for accessing your AVC fund. You might:
- Take part or all of it as a tax-free lump sum (subject to a 25% limit)
- Purchase an annuity for an additional income stream
- Transfer it into an ARF (Approved Retirement Fund) for flexible income drawdown
What’s right for you depends on your overall pension position and goals for retirement. GSB Capital Ireland can guide you through each option and help you make an informed decision.
What Truly Sets Us Apart
We’re client-centric
We pride ourselves on creating deep connections with our clients by investing as much time as necessary to get to know you and understand your needs. At GSB Ireland, we believe that the only way to help you achieve your financial goals is by fostering a long-term relationship.
We’re conscientious
We take a holistic approach to investment. We support you every step of the way by planning and executing purpose-led long-term investment strategies ⏤ helping you navigate times of uncertainty and challenging market conditions to achieve lasting financial success.
We’re committed
We’re passionate about what we do and deliver market-leading, sustainable returns. We’re disrupting financial services by combining cost-effective, passive strategy with an unhindered commitment to environmental, social and governance (ESG) principles. We invest well by doing good.
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