AVC Contributions

Sorry first, I have read the FAQ, and I'm still not sure as to the answer, so forgive me for asking an obvious question (we are having a debate here in work, which makes it even more confuising).

If we are ini a company pension scheme (defined contribution), where my emplyer puts in 5% of salary as long as we match it with 5%, is our 5% considered an avc ?

Or to be more straightforward, for an emplyee aged 35, what are the max contributions he can make on top of the emplyers 5% plus his matchinig 5% ?

Can I make an additional 15% AVC or 20% AVC on top of the above amount ?

Thanks,
Wexfordman

If we are ini a company pension scheme (defined contribution), where my emplyer puts in 5% of salary as long as we match it with 5%, is our 5% considered an avc ?

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No - for the purposes of the pension this is the main scheme

Can I make an additional 15% AVC or 20% AVC on top of the above amount ?

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AFAIA you can only make an AVC of 15 %

Thanks for the reply.

Why is it 15% only, I read (or thought I did), that the limit for a person between 30 and 40 was 20% ?

Regards,
Wexfordman

As you pay 5% to the main scheme, you can only allocate another 15% against AVC making 20% in total for your age. Your employers contributions are not taken into account.

Perfect,

Thanks a mill, all clear now. One other query, if you dont mind, and it is subjective. What would be the typical level (%) that you should aim for on a defined contribution pension scheme as your retirement benefit (excluding state pension). What is the average that people aim for. THe reason I ask, is that mine is projected to be at 30%, and I think this might be a bit low ?
Wexfordman

One are entitled to claim a pension of 2/3 of your final salary excluding state pension. Most people I think aim for 50%. Don't forget that with promotion (hopefully) etc your final salary will be greater than now after taking inflation into account.