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Beef up your RSA with Additional Voluntary Contribution (AVC)Beef up your RSA with Additional Voluntary Contribution (AVC)
September 20, 2019
Like everyone in your circle, you are seeking ways to make your money work for you. Instead of looking far and wide, why not start with AVC? Wondering what I am talking about? I am talking about Additional Voluntary Contribution, a savings targeted towards meeting future obligations/acquisitions without stress. Also, this increases the value of your pension at retirement.
WHAT IS AVC?
As it implies, Additional Voluntary Contribution (AVC) are contributions that are deducted from your salary after the statutory monthly pension deduction has been made. It is very important to have a firm grasp of this window of investment, as it is meant not only to meet future financial needs but to augment your pension to provide you a more comfortable life at retirement.
If the need arises and at any time you want to withdraw from your additional contributions, you can withdraw 50% of the total AVC contributed plus the accrued interest once in every two years; provided contributions have been retained in your RSA for a minimum period of two years. Subsequent withdrawals will be based on the incremental contributions from the date of last withdrawal.
What is more? The balance of 50% is invested along with your pension funds in order to enhance your benefits at retirement and enable you live your dream lifestyle. And the returns…they amass over time and can be so rewarding! Clearly, AVC enables you save, invest and manage your earnings efficiently, all at the same time.
WE’RE NOT FINISHED YET
It will interest you to know that, like your regular monthly contributions, Additional Voluntary Contribution is tax exempt. This means that your total income tax liability is significantly reduced. Note that only the accrued interest on the AVC contributions available for withdrawal will be subjected to tax at the point of withdrawal; where all contributions have not been retained for a period of five years in your RSA.
ONE LAST THING
If the additional voluntary contributions are left for a minimum of 5 years, you enjoy total tax exempt on the interest accrued.
NOW YOU KNOW, SO WHAT’S NEXT?
You could make an appointment with your HR Manager about how much you’d like to add to your Retirement Savings Account (RSA) or you can indicate your interest through our secure Online portal; and Mobile App.
Nobody wants to feel restricted or impoverished in retirement, so If you hope to maintain/ or boost your current lifestyle at retirement, then you should start making additional contributions now.
Still considering giving this savings a chance, you should visit surecal.leadway-pensure.comto see what your current pension scheme will be worth by the time you retire. I bet that would convince you!
Care to find out more? Get in touch with us today, please dial 01-2800800 or 2800850 or send us an email at email@example.com