Additional Voluntary Contributions (AVC) has been identified as a key component of the contributory pension scheme that can help contributors boost their pension savings for a secured future.
AVC is essential strategy for achieving long-term security, according to experts at Leadway Pensure Limited, a pension fund administrator in Nigeria.
Leadway Pensure, during a recent interactive webinar with the theme-‘Beyond the Paycheck: Winning Strategies to Boost Your Retirement Savings’ reiterated its commitment to securing the financial future of Nigerians by highlighting the benefits of AVC.
The session provided participants with practical insights, guidance, and real-time strategies for optimising retirement savings. The webinar featured two pension experts: Peter Mould, head of Business Development and Partnerships, and Gloria Daniels, head of Customer Relationship Management, both of Leadway Pensure PFA.
They demystified AVC and provided actionable steps to help Nigerians build a stronger retirement fund.
Speaking on the importance of financial stability in retirement, Peter Mould emphasised the advantages of AVC as an essential strategy for achieving long-term security.
He stated, “Retirement planning goes beyond setting aside a portion of your paycheck. It involves creating a well-structured strategy that ensures financial stability and peace of mind in your golden years.”
“AVC allow individuals to contribute extra funds to their Retirement Savings Account (RSA), helping them build a stronger financial future.”
He further highlighted that AVC is accessible to everyone, regardless of income level. “AVC is not just for high-income earners, it is for anyone who wants to take control of their financial future.
“Whether you’re a young professional just starting out or a business owner planning ahead, AVC can help you reach your retirement goals faster.”
Gloria Daniels, on the other hand, provided a step-by-step guide on initiating AVC, emphasising the flexibility and ease of the process.
She explained: “Starting your voluntary contributions is simple. You can either increase your monthly contributions or make lump-sum payments. The key is to take the first step and commit to securing a better future for yourself.”
She also introduced SureCal, Leadway Pensure’s financial planning tool, which helps users calculate their retirement savings needs. “SureCal is an intuitive financial dashboard that enables individuals to take control of their retirement future. It provides clarity on how much they need to save to achieve their retirement goals.”
She encouraging employers and HR professionals to actively promote AVC among their employees.
“Business owners and HR professionals play a critical role in fostering financial security among employees. By educating their workforce about the benefits of AVC, they have not only helped employees secure their future but also encourage a culture of financial responsibility”, she added.
The webinar also addressed common concerns, such as what happens to AVC when changing jobs or relocating and the importance of staying informed about PenCom latest regulations.
There was also a call to action for participants to take proactive steps toward securing their retirement.
Meanwhile, experts at Crusader Sterling Pension also describe AVC as 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.
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