Saving more: AVCs

You can also make Additional Voluntary Contributions (AVCs) to increase your fund at retirement.

AVCs are subject to the rules and will be invested in the same way as normal contributions. AVCs will be deducted from your salary each month in line with your usual monthly contribution and should, ideally, be paid for a minimum of five years. You can stop paying AVC’s if you suffer from financial hardship. Alternatively, a lump sum can be contributed at any time.

If you elect to contribute a substantial amount, the Administrator will calculate the maximum amount permitted which will be based on your personal details, salary level, and period of scheme membership.

The CIT awards tax relief on Members contributions, including AVCs, up to certain limits which may be reviewed from time to time. The tax relief limits are different depending on which basis you pay income tax. To benefit from tax relief, you need to complete a tax return in Gibraltar each year to inform the CIT of the contributions you have made.