# Pension - AVC



## NGUYEN (22 Sep 2010)

I have 20 years to retirement, I am on a good salary. I took some unpaid leave over a year ago and then started a new job.  

I therefore made no pension contributions for over a year - I am now considering making an AVC payment before the Oct 31st deadline, but just wanted to get people's opinion on this, as pension have not been performing so well in the last number of years.  My new pension scheme is a PRSA.

Would I be better off holding onto the funds and putting them into an investment product or making the AVC and getting the tax relief?
Any thoughts?

Thanks


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## Don_08 (22 Sep 2010)

If you don't need access to the money then AVC all the way, before they tinker with the tax relief.


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## TheFatMan (22 Sep 2010)

Hi AVC all the way is right.
If you make the AVC and your PRSA is invested in "not so rsky" investments you can only really gain in your situation.
You can make an AVC up to 25% of your total earnings for 2009 before Oct 31 assuming you are 45 (65-20!!). But if you had 0 earnings in 2009 and 0 tax paid then it may not be worth your while.

If you did pay tax in 2009
You write a cheque to your pension provider, declare the AVC to revenue and they'll send you a cheque for the tax relief. Dont forget to complete a PRSI reclaim too. Only 6-8% but its better in your pocket than in Brian Ls. But the backlog for refunds is over 6 months last I checked in PRSI. PAYE was a lot quicker


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## Scarey (23 Sep 2010)

*AVC's*

I am in  full time employment and recently frozen my avc's payments , because of current circumstances I was wondering if there is any way that i could cash in my policy with Irish Life. Is there any way around it or any loopholes that may help me cash it in. .


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## mula (24 Sep 2010)

no


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## LDFerguson (24 Sep 2010)

Scarey said:


> I am in full time employment and recently frozen my avc's payments , because of current circumstances I was wondering if there is any way that i could cash in my policy with Irish Life. Is there any way around it or any loopholes that may help me cash it in. .


 
Only access is by retiring, which can be from age 50 with the agreement of the scheme trustees.  It can be earlier in the event of serious ill-health.


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## onway (4 Oct 2010)

I was also thinking of stopping paying into my AVC......I have about 15 years before I retire and my AVC seems to be losing money. Is it true that the tax-relief makes it worthwhile to continue......


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## flatfish (11 Oct 2010)

I have €40,000 in an ARF which is dropping in value.  Would this be a good time to cash it seeing that there is likely to be an increase in tax and PRSI?


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