AVC PRSA
AVC PRSAs are provided by Bank of Ireland Life
Previously, the only way for a member of an occupational pension scheme to top up their pension was to make payments under their employer's Additional Voluntary Contribution (AVC) arrangements.
Now you can plan for retirement in an independent manner by setting up an Individual AVC Personal Retirement Savings Account (AVC PRSA).
Features
Enjoy these features of the AVC Personal Retirement Savings Account
- Get the benefits of this low-cost way to save for retirement:
- Start with as little as €25 per month
- Flexible saving: increase/decrease your contributions when it suits you, or even take a payment break
- Tax efficient: avail of generous tax relief *on your contributions, tax-free growth on your pension contributions**.
- Investment options: choose from a wide range of investment funds, with varying degrees of risk
- Retirement choices: on retirement you will have a number of flexible retirement options
*You can currently claim up to 41% tax relief on your contributions assuming you are a higher rate tax payer. It is important to note that tax relief is not automatically granted, you must apply to and satisfy Revenue requirements.
**You should however note that a temporary Government pension fund levy of 0.6% will be applied to the value of the pension assets as at 30 June for the years 2011-2014.
* Revenue terms and conditions apply. It should be noted that tax relief is not automatically granted - you must satisfy the Revenue requirements.
Terms and Conditions
If you are a higher-rate taxpayer, for every €1 you save, you can claim 41%* back in tax relief. So if you make an overall annual contribution of €1,000, this means it will actually only cost you €590 after tax relief.
The Government has set certain limits on the percentage of earnings on which you can claim tax relief.
The limit is related to your income or earnings and to your age. To find out how much tax relief you are entitled to claim, just take a look at the table below:
|
Age |
% of earnings |
|---|---|
|
Under 30 |
15% |
|
30-39 |
20% |
|
40-49 |
25% |
|
50-54 |
30% |
|
55-59 |
35% |
|
60 plus |
40% |
Contributions made by you to both your pension scheme by you and AVC PRSA will be combined when calculating the maximum tax relief. It should be noted that in certain circumstances, to comply with Revenue requirements, your contributions to your AVC PRSA may have to be restricted.
It should also be noted that tax relief is not automatically granted, you must satisfy the Revenue requirements.
The limits above are subject to an annual earnings cap (which can change each year). The figure for 2012 is €115,000 and applies to pension contributions for tax relief purposes.
Legislation restricts the maximum pension fund you may have on retirement. It also restricts the amount of tax-free cash you may take. These limits apply to the aggregate of all your pension plans. These limits (which may change each year) are €2,300,000 and €200,000 respectively for 2012. If your benefit exceeds the limits, the excess amounts will be subject to tax**.
*You can currently claim up to 41% tax relief on your contributions. 41% assumes you are a higher rate tax payer. It is important to note that tax relief is not automatically guaranteed. You must apply to and satisfy Revenue requirements.
**You should however note that a temporary Government pension fund levy of 0.6% will be applied to the value of the pension assets as at 30 June for the years 2011-2014.
Important Note:
It is important to note that the value of the pension investment fund will depend on a number of factors such as contributions made and investment returns etc., which are not guaranteed. Past performance is not necessarily a reliable guide to future investment returns, which may be higher or lower than assumed. The value of your investment and the sum you originally invested are not guaranteed.
Terms and conditions apply. Your AVC PRSA is governed by a policy document and if there is any conflict between the information on this website and the policy conditions the policy conditions will prevail.
The information about Bank of Ireland Life's products and services is intended only for Irish residents. Bank of Ireland Life's products may only be bought by Irish residents.
Bank of Ireland Life is a trading name of New Ireland Assurance Company plc.
New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Central Bank of Ireland. Bank of Ireland Insurance and Investments Limited is regulated by the Central Bank of Ireland. Bank of Ireland is regulated by the Central Bank of Ireland. Bank of Ireland and Bank of Ireland Insurance and Investments Limited are tied agents of Bank of Ireland Life. Members of Bank of Ireland Group.