Voluntary Contributions
What are Voluntary Contributions (VCs)?
Voluntary Contributions (VCs) are extra, non-mandatory pension contributions made by eligible employees, in addition to the mandatory contributions required by law, to actively grow their retirement savings and meet specific financial goals. Your employer deducts these contributions directly from your salary and remits them into your Retirement Savings Account (RSA).
Unlike AVCs, VCs are more flexible, giving you full control over how much you contribute and how frequently. Whether you prefer monthly, quarterly, bi-annual or annual contributions, VCs give you the freedom to manage your retirement savings in a way that best suits your financial goals and income patterns.
Why Choose Voluntary Contributions (VCs)
. Personalized Savings Control
With VCs, you take charge of your retirement by determining how much to contribute, based on your personal goals and financial capacity. This flexibility lets you make contributions that align with your unique financial situation.
. Flexible Frequency
VCs allow you to decide when and how often you contribute. Whether monthly, quarterly, bi-annually or annually, you can adjust your contributions to align with your income flow and financial goals.
. Enhanced Retirement Security
Adding extra funds to your pension over time with VCs can significantly increase your RSA balance, resulting in a larger retirement fund and greater financial security when you retire.
Voluntary Contributions
. Potential Tax Advantages
Contributions to VCs may offer potential tax benefits, depending on your withdrawal timing. For example, contributions held for five years or more are often eligible for tax exemptions, reducing your overall tax liability.
. Simplicity and Ease
VCs are automatically deducted from your salary, ensuring consistent contributions to your RSA without requiring extra effort on your part.
. Versatility Beyond Retirement
While VCs are aimed at enhancing your retirement savings, they can also serve as a way to save for other long-term goals, such as homeownership, education or travel, when withdrawn according to the established guidelines.
Paying into a Voluntary Contribution (VC) Account
At Trustfund Pensions Limited, making Voluntary Contributions (VC) to your Retirement Savings Account (RSA) is simple and convenient.
To get started, simply inform your employer to deduct your chosen contribution amount directly from your salary before it is paid to you—a process known as deduction at source.
Not sure how much to contribute? Use our RSA Calculator (Add a hyperlink or button here pls) to determine the contribution amount most aligned with your retirement goals.
Voluntary Contribution (VC) Withdrawal
Contributors may withdraw from the balance in their Voluntary Contribution (VC) Account at any time. However, please note that any income earned on these contributions will be subject to tax if the withdrawal is made within five (5) years from the date the contribution was made.To enjoy tax-free withdrawals on income earned, voluntary contributions must remain in the account for at least five years.
- *For further guidance on voluntary contributions and tax implications, please contact our customer support or visit our FAQ section.
Benefits of AVC
Additional Voluntary Contributions (AVC)
What are Additional Voluntary Contributions (AVCs) and How Can They Help You?
AVCs are extra, non-mandatory contributions made by employees under the Contributory Pension Scheme (CPS), through their employers. They are deducted directly from your monthly salary—alongside your statutory pension contributions—and remitted into your Retirement Savings Account (RSA). AVC is a subset of VC under the CPS, with structured rules and employer-based remittance.
Unlike regular savings, AVCs are taken out before tax, offering the benefit of tax exemption at the point of deduction and reducing your total tax burden.
Benefits of AVCs
. Professional Investment Management
Your AVCs are pooled into the Trustfund Pensions RSA Fund and managed with the same diligence as your regular pension contributions—helping your savings grow over time.
. Full Contribution Control
Decide how much you want to contribute and how often—monthly, quarterly, bi-annually, or annually—based on your income and financial goals.
. Regulated Withdrawal Access
You may withdraw from your AVCs once every two years per contribution. Up to 50% is available for contingent needs, while the remaining 50% continues to grow in your RSA.
. Goal-Oriented Flexibility
Beyond retirement, AVCs can help you save toward life goals—like home ownership, children’s education or travel—while still supporting your retirement goals and long-term financial security.
*For further guidance on voluntary contributions and tax implications, please contact our customer support or visit our FAQ section.