Additional voluntary contributions
Some companies offer an additional voluntary contributions (AVC) plan. This is a plan set up by an employer so that the employee can choose to become a member if they wish. It is policy that sits alongside your company pension.
When you join an AVC scheme you pay contributions. The fund that builds up is used to provide an income to supplement your company pension.
Features of AVCs
- There may be lower administration charges compared to investing a separate personal pension scheme.
- Flexibility - you can stop or vary the amount you pay. Although bear in mind that charges will continue to be deducted.
- Tax relief on your contributions (up to certain limits).
- Attractive tax-free cash options at retirement.
Free standing additional voluntary contributions (FSAVCs)
FSAVCs are similar to additional voluntary contributions and are also designed to sit alongside your company pension. The difference is that instead of the employer setting up the plan and deducting contributions from your salary, you set it up through a pension provider.
Take action
- Use our AVC calculator to see how you could benefit from setting up an AVC plan.
- Check with your employer to see if they offer an AVC plan.
- If you already have an AVC plan that is administered by Prudential you can top it up here.
- Click on Prudential FSAVC plan if you already have one.
