AVC Calculator

It's annoying not having enough money. If you're about to retire, it can be frightening. Additional Voluntary Contributions could boost your retirement income and give you a better quality of life. You'll also get tax relief on your contributions.

And don't forget that AVCs qualify for tax relief in the same way as contributions to the main scheme.

For example, if you are a basic rate tax payer, you currently receive 20% tax relief on your contributions, so for every £100 you contribute the real cost to you is only £80.

This is subject to HMRC restrictions on amounts of contributions that qualify for tax relief.

Please remember that pension income will be taxed as earned income.

The amount you enter will be what you contribute before tax relief is taken into account.

But how much more do you need to pay in to get the retirement income you want?

How To Use Our AVC Calculator

The calculator provides you with an estimate of the pension you could expect to obtain according to the retirement age and the level of AVC contributions you select. You can receive tax relief on contributions to all pension funds you are a member of, up to 100% of your salary, but you need to confirm the maximum you can make to the AVC with your main scheme trustees or scheme administrator.

Three sets of figures produced reflect low, medium and high percentage growth in investments. The figures calculated are for guidance purposes only and are not guaranteed. They are not minimum or maximum amounts. What you will get back depends on how your investment grows and on the tax treatment of the investment. You could get back more or less than the figures illustrated. Please note that all firms use the same rates of growth for projections but their charges vary. Do not forget that inflation would reduce what you could buy in the future with the amounts shown.

Select your planned retirement age from the options given. You are able to take your AVC benefits at normal retirement date with your main scheme benefits, or you may, subject to confirmation by your scheme trustees, take them at any date up to the day before your 75th birthday.

The value of an investment may go down as well as up and the fund value at retirement may be less than the payments you have made. For investments in the With-Profits Funds, the value of the policy depends on how much profit the fund makes and how we decide to distribute it. A Market Value Reduction may be applied; this will have the effect of reducing your fund value.

You also have the option of buying "additional regular contributions/added years AVCs or additional pension benefit" within your pension scheme and you should contact your scheme trustees or scheme administrators for more details.

The above information is based on our understanding, as at June 2009 of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances

We have provided you with quotations based on three different rates of return, showing the benefits you might receive on your selected retirement date* if your account grows at the rates shown until the pension starts and once it is in payment.

These figures are only illustrative and not guaranteed; they are not minimum or maximum amounts. What you will get back depends on how your investment grows and on the tax treatment of the investment.

Your retirement fund could be less or more than this.

All firms use the same rates of growth for projections but their charges vary. They also use the same rates to show how funds may be converted into pension income.

Do not forget that inflation would reduce what you could buy in the future with the amounts shown.

The examples take into account a yearly management charge of either 0.82% (for 5% growth), 1% (for 7% growth) or 1.17% (for 9% growth) which includes allowance for expenses, charges and other adjustments.

The pension will be payable monthly in advance from the day you retire. The payment of your pension will be guaranteed for a minimum of five years, even if you die between your chosen payment date and the end of this period.

You can buy your pension benefits from Prudential - on the rates that we offer at the time of your retirement - or, if you can obtain better rates elsewhere, you can exercise your Open Market Option and use your AVC account to purchase a pension with that provider.

* Applicable to investment in the With-Profits Fund only