additional voluntary contributions
- additional voluntary contributions
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AVCs are a top-up payments made by people into their pension schemes to boost their eventual retirement income.
There are two types of AVC. Financial Services Glossary
Additional voluntary contributions ( AVCs). This type of top-up policy is run by employers, and contributions are normally taken from the employees pay. Financial Services Glossary
Free-Standing AVCs (FSAVC). A top-up pension policy that is taken out with an investment firm, and is separate to an employer's pension scheme. Financial Services Glossary
AVCs tend to be cheaper to make because the administration cost are lower as the employee will already be in the pension scheme. An FSAVC may be slightly more expensive due to an another company making the investment to make your money grow.
The total amount that can be paid into a pension from all sources, including FSAVCs and AVCs must not exceed 15 per cent of your earnings in any tax year. Tax relief is also received on AVCs at your basic rate, as with other pension contributions.
Financial and business terms.
2012.
Look at other dictionaries:
additional voluntary contributions — /əˌdɪʃ(ə)n(ə)l ˌvɒlənt(ə)ri kɒntrɪ bju:ʃ(ə)nz/ plural noun extra payments made voluntarily by an employee to a pension scheme (on top of the normal contributions, up to a maximum of 15% of gross earnings). Abbreviation AVCs … Dictionary of banking and finance
Free-standing Additional Voluntary Contributions — ( FSAVCs) See additional voluntary contributions. Financial Services Glossary … Financial and business terms
Additional Voluntary Contribution – AVC — An extra allocation of funds to a retirement savings account that is above the amount that an employer will provide a matching contribution for. Additional voluntary contributions are made at the discretion of the employee and go to an employer… … Investment dictionary
additional voluntary contribution — AVC Additional pension scheme contributions that employees can make, at their discretion, in order to increase the benefits available from their pension fund on retirement. Additional voluntary contributions can be paid into an employers scheme… … Accounting dictionary
additional voluntary contribution — AVC Additional pension scheme contributions that employees can make, at their discretion, in order to increase the benefits available from their pension fund on retirement. Additional voluntary contributions can be paid into an employers scheme… … Big dictionary of business and management
free-standing additional voluntary contributions plan — /fri: ˌstændɪŋ əˌdɪʃ(ə)nəl ˌvɒlənt(ə)ri ˌkɒntrɪ bju:ʃ(ə)ns/ noun a separate pension plan taken out by an individual in addition to a company pension scheme … Dictionary of banking and finance
AVCs — ( additional voluntary contributions) AVCs are a top up payments made by people into their pension schemes to boost their eventual retirement income. There are two types of AVC. Additional voluntary contributions (AVCs). This type of top up… … Financial and business terms
AVC — ( additional voluntary contributions) AVCs are a top up payments made by people into their pension schemes to boost their eventual retirement income. There are two types of AVC. Financial Services Glossary Additional voluntary contributions (… … Financial and business terms
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