Save More with Voluntary Contributions
Want a comfortable, worry-free retirement? The Voluntary Contributions (VC) plan from CrusaderSterling Pension lets you achieve that.
What are Additional Voluntary Contributions?
Additional Voluntary Contributions (AVC) are contributions made by RSA holders in addition to the mandatory contributions within the contributory scheme. It is a strategic way to enhance your pension savings beyond the mandatory contributions.
It also serves as a tailored savings avenue, allowing you to achieve specific financial goals towards retirement. These contributions are tax-exempt, meaning they are deducted from your income before taxes are levied, resulting in reduced tax obligations.
Features
- Backed by PRA 2014, Section 4(7).
- Deductions are from Monthly emoluments
- Paid in Nigerian Currency (Naira);
- Those exempted from the mandatory Retirement Savings account (RSA) in the PRA 2014, are eligible to participate
- 50% of every amount lodged as AVC shall be treated as “contingent” which is available for withdrawal after every two years.
- The remaining 50% shall be treated as “fixed” until retirement date
- Retirees and exempted contributors from PRA 2014 are entitled to withdraw all their Voluntary contribution in the Retirement savings account at the expiration of their contract of employment.
- The principal amount and any income accrued shall be subjected to tax where the withdrawal is made before five years from the date of the voluntary contribution;
Benefits
- Increased Retirement Savings: AVC provides an avenue to bolster your retirement savings beyond the standard employer contributions, ensuring you have more financial security during your golden years.
- Tax Efficiency: Contributions to AVC are deducted from income before taxes are applied, leading to immediate tax savings. This tax efficiency enhances the growth potential of the contributions over time, as more funds are invested upfront.
- Convenient Contribution Process: Enjoy the convenience of contributing to your AVC fund on your terms, whether it’s weekly, monthly, quarterly, or yearly. Our user-friendly online platform makes tracking contributions effortless from any location.
- Flexible Withdrawal Options: With AVC, you have the flexibility to access up to 50% of your accumulated funds after just two years of consistent contributions, offering peace of mind and financial flexibility when needed.
- Diversified and Secure Investments: Rest assured that your AVC funds are prudently invested in assets with low risk and attractive interest rates, aimed at maximizing the growth of your pension savings while safeguarding your financial future.
Who Needs This Plan?
- Employees: Anyone who wants to save more for retirement and maximize their tax benefits.
- Retirees: People who have returned to work and want to increase their retirement savings.
Requirements
- You must be gainfully employed
- You must have a PIN number from PENCOM.
- An instruction must be issued to the officer or department responsible for pension deductions in your organization stating the amount for AVC.
- The funds are paid to the bank with the normal RSA.
- The AVC amount is stated on the schedule column with the header AVC.
