Additional Voluntary Contributions

Additional Voluntary Contributions (AVCs) are designed for those of you who are members of a company pension scheme but want to increase the contributions you make to boost your retirement income.

Average life expectancy is increasing so saving in a pension - and topping it up with an AVC plan - is a prudent way of helping to fund the lifestyle you want in retirement.

You can see the benefits of supplementing your pension with our AVC calculator.

Why save in an AVC scheme?

• Tax-efficient* - AVCs qualify for tax relief like other pension contributions do. If you're a basic rate taxpayer for every £100 invested in your pension it only costs you £80 because you will receive tax relief of £20. If you're a higher rate taxpayer it will only cost you £60 because you will receive £40 in tax relief. You are also allowed to take up to 25% of your fund as tax-free cash when you retire. Read about the tax benefits of saving in a pension. Note that pensions in payment are taxed as earned income.

Take action

To start or find out about the particular benefits of an AVC scheme, speak with your employer or call

0845 600 0343

Mon- Fri 9am-6pm.

Read the key features and apply for the following:

• teacher
• university
• local government
• company
  
• If you are an employer or trustee please visit our employer section of the website.
• Help boost your retirement income - your AVC plan aims to increase your retirement income and sit alongside any company pension scheme you may have. You can also take a tax free cash lump sum, just like other pensions. See our AVC calculator to find out how an AVC plan can help enhance your retirement income.
• Access additional benefits - you can buy additional pension benefits in some schemes such as added years AVCs. Check your scheme to find out more.
• Portable - you can transfer your AVC plan to your new employer if you move jobs.
• Flexible - you can vary, stop and start, and make regular and/or lump sum payments at any time. Note that charges will still continue to be applied.
• Access a range of funds - your additional pension contributions can be invested in a range funds, although the funds actually available to you may depend on the scheme you join. Note the value of your fund may fluctuate and you may not get back your original investment.

*This is based on our understanding, as at 6 April 2009, of current taxation, legislation and HM Revenue and practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.