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Move AVC to another company?

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  • 01-07-2009 7:00pm
    #1
    stereo_steve
    Registered Users Posts: 1,226 ✭✭✭


    Hi Everybody,

    I'm have a quick question about my pension. Each month my employer puts the equivalent of 6% of my salary into a pension and I put in 4% of my actual salary. This is mandatory and everyone does it.

    On top of this , for the last two years I have been putting a further 5% of my salary into an AVC into the same fund. It has just occurred to me that really I should diversify a little bit as I have all my eggs in one basket. Who's to say Mercer won't go bankrupt in the next 30 years? Their fund manager might be useless etc.

    Should I be putting my AVC into a fund with another pension provider? How does the tax and PRSI work then when I fund it myself? I don't suppose I can just invest money myself and say its for my AVC? Get the tax benefits from it providing I don't touch the money until retirement? For example Rabo do a regular investor account? Not AVC related though.

    Thanks for any help I get.
    Steve


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    #2
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    Are Mercer the broker ? There may be a choice of fund managers and fund choices also. If not you could set up your own AVC with another provider. The most important point is you are putting a decent amount into the pension, even try to increase as you get older to maximise your limits from a tax relief point of view.


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