It really depends on what rate of tax you will pay when you retire, have you other income such as rental income, are you married etc etc. If you are single your part of your penion will certainly be taxed at the higher rate so there will be no real advantage starting a AVC except for tax free growth.
If you are married and you nominated the main earner and ye have transfered the max cut off point to yourself (41,800)then it maybe worth while funding a AVC. Lets say for a moment that your total personal income is 32,500, you could invest in a ARF when you retire and then withdraw up to 9,300 per year and only pay 20% tax plus USC of 7%. Summing up...You would get 41% tax relief on contributions but when you retire and if the sums add up as above you would only pay 27% tax on any withdrawals
You really need to sit down with an advisor and look at what the likely rate of tax you would pay on any funds you would draw down in retirement before you should consider contribution to an AVC
If you are married and you nominated the main earner and ye have transfered the max cut off point to yourself (41,800)then it maybe worth while funding a AVC. Lets say for a moment that your total personal income is 32,500, you could invest in a ARF when you retire and then withdraw up to 9,300 per year and only pay 20% tax plus USC of 7%. Summing up...You would get 41% tax relief on contributions but when you retire and if the sums add up as above you would only pay 27% tax on any withdrawals
You really need to sit down with an advisor and look at what the likely rate of tax you would pay on any funds you would draw down in retirement before you should consider contribution to an AVC