AVC Advice

[Slainte77]

46, €40 Salary. Started paying into the Single Pension Scheme in 2021.
Looking to set up an AVC to top up my pension when I retire.
Would using a broker to set up an execution only AVC be the best route for me set one up. The one I'm looking at is offering 100% allocation and 1% annual management fee.
Also, what's the difference between an AVC and a PRSA AVC?

I'm just wondering what is the best way for me to move forward and most cost effective way. Thanks for any help provided.

 

[S class]

AVCs are set up and operated by a provider who has been appointed by your employer. Contributions can be deducted at source from your wages. Tax relief is automatically given without any input from you. The provider will probably charge higher fees than you could get from an AVC PRSA.

An AVC PRSA is set up by a provider determined by you. You can shop around for lower fees. Your employer is not involved in the setting up process and you do not need to inform them that you have an AVC PRSA. The contributions are made directly to the provider by direct debit. You would have to claim the tax relief. This is not difficult and can be set up through myaccount to allow you get tax relief on your contributions as you pay them.

At retirement the benefits available are identical for both AVCs and an AVC PRSA.
Both are linked to your occupational pension and the benefits are claimed at the time you start benefits from your occupational pension.

If you are willing to do a little extra bit of work setting up an AVC PRSA using an execution only broker you will probably pay lower fees.