Additional Voluntary Contributions
Top up your workplace pension tax-efficiently and give your retirement fund a boost, using relief you may not be fully using.
What an AVC is
An AVC is an extra contribution you make on top of your main occupational pension. If you are a member of a company or public-sector scheme and you have room within your age-related relief limit, an AVC lets you use it. The money gets the same income tax relief as your main contributions and grows in the same tax-free way until you retire.
AVCs come in two forms. A scheme AVC is linked to your employer’s pension and invested alongside it. A standalone PRSA AVC is a separate plan you arrange yourself, useful if you want more fund choice or your scheme does not offer AVCs in-house. Both reach the same destination.
Who it is for
- Members of an occupational or public-sector scheme who can afford to save more
- People in their 40s and 50s who have relief headroom they are not using
- Public servants topping up to buy back years or fill a pension gap
- Anyone expecting a shortfall in their tax-free lump sum at retirement
How it works
You decide how much to pay, either regularly or as a lump sum, and it is added to your pension savings. The contribution is combined with your main scheme contributions when your age-related limit is worked out. At retirement your AVC pot sits alongside your main pension and can help fund your tax-free lump sum, an Approved Retirement Fund, or extra income.
The tax relief
AVCs get income tax relief at your marginal rate, the same as any pension contribution. The point worth knowing is that your AVCs and your main scheme contributions share one age-related limit, so the percentage below is the total across both:
| Age | Percentage of earnings eligible for relief |
|---|---|
| Under 30 | 15% |
| 30 to 39 | 20% |
| 40 to 49 | 25% |
| 50 to 54 | 30% |
| 55 to 59 | 35% |
| 60 and over | 40% |
A common and efficient move is a lump-sum AVC before the October tax deadline, backdated to the previous year, to use up unused relief. For a higher-rate taxpayer a €5,000 AVC can attract €2,000 back, so the fund grows by €5,000 at a net cost of €3,000.
How much more can I pay in this year?
If you are in a company or public-sector scheme, you share one age-related relief limit across everything you pay in, and most people never use all of it. Enter your age, your earnings and what you already contribute, and this shows the room you have left, the relief a top-up would attract, and what it would cost you net. A lump-sum AVC before the October deadline is a common way to use it. We will check the figure against your scheme before you commit to anything.
AVC headroom calculator
How much more you could pay in this year, and what it would cost you after relief.
Fill in the fields above and press Calculate.
Why talk to BDS
The value of an AVC depends on the room you have and on getting the timing right. We check what you are already paying, work out your remaining relief, and set an AVC that uses it without overshooting. We also make sure a standalone PRSA AVC is the right call where your scheme’s own option is limited or expensive.
Common questions
No. You can use a standalone PRSA AVC instead, which often gives wider fund choice. We compare both.
Yes. Many people pay a lump sum near the tax deadline to mop up unused relief for the year.
No. It sits alongside it. It simply gives you a bigger fund and, often, a larger tax-free lump sum.
Yes, the same age-related limit that applies to all your pension contributions combined, on earnings up to €115,000. We calculate your headroom.
Other kinds of pension
Personal pensions
Company pensions
PRSAs
Executive pensions
Important information
Contribution limits, tax relief rates and thresholds are set by Revenue and apply to the 2026 tax year. They can change in future Budgets and Finance Acts, and the right approach depends on your own circumstances. The examples are illustrations, not projections of what you would receive.
David Sheahan Insurance & Investments Ltd t/a BDS Financial is regulated by the Central Bank of Ireland. Reg. no. 115813. Offices in Limerick, Dublin and Galway.
This content is general information and is not financial advice. The value of investments can fall as well as rise.
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