ADDITIONAL VOLUNTARY CONTRIBUTION
Additional Voluntary Contribution (AVC) is referred to as the extra contribution made outside the mandatory 18% employer (10%) and employee (8%) contributions into an individual’s Retirement Savings Account (RSA).
Please note that you do not need to open a separate pension account to make additional voluntary contributions.
It is accessible at any time and non-taxable if there are no withdrawals for a minimum period of 5 years.
The contribution must come through your payroll/employer.
Benefits of AVC
- It helps you cultivate a savings culture.
- It provides you with additional funds and financial strength at retirement.
- It makes it possible for you to meet unexpected financial obligations.
- It attracts the same investment returns as your statutory pension contributions
- You can monitor your contributions via your statement of account.
- You can remit any amount as long as you are comfortable with it.