AVCs: Can u have several A/C's: Do you have to take your employers? good books?

B

Bewildered

Guest
Can someone tell me:
1. Is it ok to have several AVC schemes in operation at the one time? Do Revenue rules confine you to only one?
2. Do I have to use the AVC scheme supplied by my employer or can I take a better one outside?
3. Can the bid-offer spread (typically 5% up front on contributions) be avoided? It seems excessive as there is also a 1.5% annual maintenance charge.
4. Is there a good source for general advice on pensions - either a book or online? I have tried the pensions board.

Many thanks for any enlightenment.
 
Re: AVCs

  • My understanding - if you are in one company scheme (i.e. you have one pensionable employment) then you can have one related avc arrangement (in respect of that same employment)...if you have lots of different jobs, you can have lots of different AVC arrangements.
  • You can opt for a different AVC (such as a PRSA AVC) to the one put forward by your employer.
  • Yes it can be avoided if you go to a fee based broker, or negotiate a deal directly yourself (not easy).
  • The Pensions Board, this website, Paul Kenny The Pensions Ombudsman has a good book about pensions...also the various insurance companies produce decent explanatory stuff, obviously that stuff will be biased towards their own products though...but if you bear that in mind when reading it, then it is pretty decent!
 
Re: AVCs

you can take out a PRSA AVC outside of your own employment. The problem is it won't be deducted from your salary and you will have to pay the gross amount every month and claim the full reliefs later.
 
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