Now that you are approaching retirement, it’s important to consider your options. You can take a tax free lump sum and you may be able to use the balance to avail of (1) a pension income for life, called an Annuity (2) an Approved Retirement Fund and/or (3) a taxable lump sum.
A Last Minute Additional Voluntary Contributions (AVC) is a once off contribution made when you are coming close to retirement which may help you maximise your tax-free lump sum. If you pay €1000 into an AVC you could get €200 – €400 tax back depending on your tax rate.
As you are coming closer to retirement, it’s important to get your ‘duck in order’ & make sure you maximise your benefits before you retire.