When it comes to planning for retirement, most of us are focused on the basics: contributing to our employer fund, hoping for a solid return, and dreaming of the day to finally switch off the alarm clock for good. But what if there was a simple way to accelerate your journey to financial freedom? This is where AVCs could be the best decision you make for your future self.

What are AVCs?

AVCs are extra contributions you choose to make on top of your regular retirement fund contributions. They're flexible, personal, and powerful. With the AVC, you decide how much when to contribute; and because they’re voluntary, you can pause or adjust the AVC if circumstances change.

Why AVCs make a big difference

AVCs can create significant long-term impact, thanks to the power of compound interest. Think of it like planting extra seeds in your retirement garden; each one has the potential to grow into something meaningful. Let’s break it down*:

• R100 extra per month over 20 years, growing at 8% annually, could give you over R50,000 more at retirement.
• R500 per month? That’s over R250,000 more in your retirement pot.

*Disclaimer: These calculations are just for illustrative purposes. If you would like to find out more, chat to 10X to see how AVCs can work for you.

AVCs = more control, more freedom

AVCs give you control. You’re not waiting for a bonus or hoping markets will bounce back. You’re actively building a bigger nest egg, one top-up at a time. Here’s what makes them even more attractive:

• Tax savings: Contributions are usually tax-deductible, so you may pay less tax now while saving later.
• Better retirement income: More in your fund could mean a higher monthly income when you retire.
• Peace of mind: Knowing you’re doing everything you can to set yourself up for comfort and security.

How to get started

1. Check your retirement fund rules: Most umbrella or pension funds allow AVCs.
2. Decide your amount: Even R100 or R200 a month makes a difference.
3. Automate it: Set it and forget it.
4. Review annually: Increase your contribution if you get a raise or bonus.

It’s never too late

Whether you're 25 or 55, AVCs are worth considering. If you’re starting late, AVCs can help close the gap. If you’re on track, they can boost your confidence and flexibility in retirement.

Final thought

You don’t need to overhaul your budget to make a big difference. You just need to start. AVCs are the fast lane to a more comfortable, confident retirement.

Could you save more money? Probably. Should you? Absolutely. Ready to boost your retirement savings? Speak to your HR team or 10X about setting up your AVCs today.