In addition to basic contributions, you can make additional voluntary contributions (AVCs). These are contributions over and above the required basic contributions. AVCs are deposited in your member account.

Why make AVCs?

The Silver Thatch Pension Plan is a first-rate plan. It's as good (or better) than any in the Cayman Islands. However, it still may not meet all of your retirement income needs. That's why we allow you to boost your retirement income through additional voluntary contributions (AVCs).

These contributions

	allow you to boost your pension income by as much as you want;
	allow you to save through the convenience of payroll deductions;
	give you the flexibility to start, stop, or change the level of your contributions at any time;
	offer you control over your investments – you decide where to invest your AVCs, picking from a range of professionally managed investment portfolios;
	give you access to quality investments typically not available to investors with modest amounts of money; and
	allow you to alter the overall risk-reward position of your investments (see “Picking a portfolio”).

Your AVC Investment Options

At retirement, you can withdraw the full cash value of your AVC account – including contributions and related investment earnings. You don't need to use this money to provide a retirement income – you can spend it any way you want.

You can invest your additional voluntary contributions in five different investment portfolios. Each of the five Profile portfolios offers a different mix of bonds and equities.

There is

	An aggressive portfolio, made up almost entirely of equities. This portfolio is intended for individuals who are looking to maximize their returns and who are willing to accept greater short-term risk.
	A growth portfolio, made up of about 75% equities, 25% bonds. This portfolio is intended for individuals who are looking for greater potential returns and who are willing to accept more risk than the average balanced fund.
	A balanced portfolio, made up of about 50% equities, 50% bonds. This portfolio is designed to enhance investment returns over the long term while ensuring the short-term preservation of capital.
	A conservative portfolio, made up of about 25% equities, 75% bonds. This portfolio is intended for individuals who want to protect the assets they have already accumulated, but who also want some potential growth.
	An income portfolio, made up almost entirely of bonds. This ultraconservative portfolio is intended for individuals who are looking for maximum security (i.e., minimal short-term fluctuations in value) and who are willing to accept modest returns.

This range of investment options allows you to select an asset mix that suits your investment objectives and comfort level.

Even a small AVC contribution can make a big difference

For more information on AVCs and how they can make a huge difference to your retirement savings please take a look at our Smart Investor Guide – click here to download.