AVC can stand for additional voluntary contribution, a type of supplementary payment to a pension fund.
Additional Voluntary Contribution Explained
An additional voluntary contribution (AVC) is essentially an extra payment made into a pension scheme, in addition to regular contributions. This allows individuals to boost their retirement savings.
Key Features of AVCs:
- Supplementary Payments: AVCs are not mandatory; they are additional voluntary contributions.
- Pension Fund Focus: They are specifically directed towards a pension fund to enhance retirement savings.
- Tax Benefits: AVCs often benefit from tax relief, making them a potentially efficient way to save for retirement. It is always important to confirm tax implications with a financial advisor.
