Let our discontent with our financial situation act as the driving force for change, not a reason to give up. This was the very idea that prompted Mrs. Gabriel to take immediate action after checking her RSA account. Rather than accepting the situation, she placed a call to express her dissatisfaction and further enquired about what steps she could take to enhance her contributions to fund her desired lifestyle at retirement.
In response, the friendly representatives at ARM Pensions enlightened Mrs. Gabriel about the Additional Voluntary Contribution (AVC) option. They explained the numerous benefits it offers, making sure she understood the information clearly. She was delighted to learn that one of the significant advantages of AVC is that it lowers the overall tax liability. By contributing more to your retirement savings through AVC, you not only secure your future but also reduce the amount of tax you will have to pay.
Voluntary Contributions are extra funds you can opt to add to your mandatory pension contributions, or simply set aside as retirement savings. These funds would be deducted from your monthly emolument by your employer and remitted into your ARM Pensions Retirement Savings Account (RSA), along with your regular pension contributions.
Mrs. Gabriel was delighted to learn about another benefit of AVC—eligibility to withdraw 50% from the AVC on contributions that have matured for up to two years since the last approved withdrawal date. While the tax would be deducted on the accrued interest at the point of withdrawal for contributions that have stayed less than 5 years in the RSA. It still provides a great opportunity to access some of the accumulated savings if needed.
To help Mrs. Gabriel understand the potential growth of her AVC contributions, the ARM Pensions team provided projections on the expected value she could save to suit her desired retirement lifestyle. These projections gave her a clear picture of the advantages of subscribing to AVC.
Fast forward three years, Mrs. Gabriel was pleasantly surprised to see a significant increase in her RSA balance after subscribing to AVC. She could not be happier with her decision, and she continues to monitor the growth of her retirement savings.
The fact is, if you are interested in Additional Voluntary Contributions and want to shape your dream retirement, all you need to do is visit https://www.armpension.com/retirement-plans/voluntary-contribution#withdrawal-updates here, you will find all the information you need to get started on your AVC journey.
The key takeaway from Mrs. Gabriel’s story is the importance of intentional engagement in augmenting your RSA balance for a better retirement. By providing clear and precise explanations of the benefits of AVC, citing real-life scenarios, ARM Pensions encouraged Mrs. Gabriel to act, and she hasn’t looked back since.