Boost your Local Government Pension Scheme with Additional Voluntary Contributions

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Apply for an AVC plan

Existing customer looking to increase?

Increase your AVC pot

Are you interested in retiring early or with more money? Whether you're close to retirement or it's still a long way off, it's not too early to start thinking about the kind of lifestyle you want when you stop working, or too late to make a difference.

In addition to your main Local Government Pension Scheme (LGPS) benefits, AVCs could be just the thing to provide you with extra retirement benefits.

To understand the basics of AVCs, you can watch our video What are AVCs? before reading more information below.

AVCs are investment based so the value can go down as well as up and you may get back less than you put in.

I started an AVC because I believe they are a very efficient and cost effective way to save for the future as part of a broader portfolio of investments. Mr Tilley, Greater Manchester Pension Fund

How AVCs could help your retirement

What are AVCs?

AVCs could be just the thing to provide you with extra benefits in retirement.

Learn more

Tax relief

Building up your AVC pot could be easier than you think, thanks to tax relief.

Learn more

Flexible contributions

AVCs are flexible so you can change your contributions to suit your needs and circumstances.

Learn more

Investment choices

When it comes to choosing where to invest your AVCs, there's no need to feel overwhelmed.

Learn more

Flexible ways to take your money

You have a number of options for taking your money.
 

Learn more

Trusted provider partnership

Prudential is an appointed AVC provider to 74 Administering Authorities within the LGPS.

Learn more

Case studies - how AVCs might work for you

These examples represent some typical situations and do not relate to any particular individuals or circumstances and they are not recommendations or advice. All figures are for illustration purposes only and are not guaranteed. The monthly contribution figures are gross which means they include the tax relief.

John has competing priorities for his money

Current age: 32
LGPS retirement age: 68
Wants to retire: 65
Contribution years: 33
Monthly contribution: £40

Potential growth: £16,300
Tax relief: £3,160
Estimated AVC fund value: £32,100

 

John case study

John wants to start planning for retirement as he would like to stop work a couple of years before his retirement age. He feels he can’t afford AVCs as he has two small children and struggles to find extra cash. However, John realises he can afford £40 a month by giving up the cup of coffee he usually buys on his way to work.

With tax relief of £3,160 and potential growth of £16,300, this would give John an estimated AVC fund value of £32,100 when he wants to retire.

Even though John is starting with a small amount, he knows he will need to increase his AVCs to give him a bigger AVC pot. He does have peace of mind knowing he is planning for his future.

Go to our AVC calculator if you'd like to work out your own figures.

Sarah feels like retirement is a long way off

Current age: 34
LGPS retirement age: 68
Wants to retire: 68
Contribution years: 34
Monthly contribution: £50

Potential growth: £21,900
Tax relief: £4,080
Estimated AVC fund value: £42,300

 

Sarah case study picture

Sarah doesn’t think that she needs to worry about planning for retirement. However she looks at what an AVC could give her if she contributes £50 a month until she retires. She is surprised to see how much tax relief and growth could add up to. 

With tax relief of £4,080 and potential growth of £21,900, Sarah would have an estimated AVC fund value of £42,300 when she wants to retire.

This could make a difference to Sarah's lifestyle in retirement.

Go to our AVC calculator if you'd like to work out your own figures.

Alex wants to retire early

Current age: 47
LGPS retirement age: 67
Wants to retire: 65
Contribution years: 18
Monthly contribution: £130

Potential growth: £12,500
Tax relief: £5,610
Estimated AVC fund value: £40,600

 

Alex case study picture

Alex would like to be able to retire before he’s 67 if possible. If he starts AVCs now, he has worked out that he could use his AVC pot to retire two years early by transferring it to a different product. 

With tax relief of £5,610 and potential growth of £12,500, Alex would have an estimated AVC fund value of £40,600 to transfer to a new product offering partial withdrawals.

He’d then be able to take partial withdrawals and defer taking his main LGPS benefits until he's 67.

Go to our AVC calculator if you'd like to work out your own figures.

Priya is worried it’s too late to start an AVC plan

Current age: 55
LGPS retirement age: 67
Wants to retire: 67
Contribution years: 12
Monthly contribution: £150

Potential growth: £5,940
Tax relief: £4,320
Estimated AVC fund value: £27,500

 

Priya case study picture

Priya is keen to save some extra money for her retirement but isn’t sure what the best option is for her. She’s also worried that it might be too late to make a real difference.

Priya finds out that by savings into AVCs, she benefits from tax relief. 

With tax relief of £4,320 and potential growth of £5,940, Priya would have an estimated AVC fund value of £27,500 to take as 100% tax-free cash when she retires.

She'd be able to take a 100% tax-free lump sum assuming it would fall within overall HM Revenue & Customs maximums and is less than 25% of her main LGPS benefits. 

Go to our AVC calculator if you'd like to work out your own figures.

Hannah had a career break so she has no AVC plan

Current age: 60
LGPS retirement age: 67
Wants to retire: 65
Contribution years: 5
Monthly contribution: £350

Potential growth: £2,200
Tax relief: £4,200
Estimated AVC fund value: £23,200

 

Hannah - case study image

Hannah has had a number of breaks in her career and never got around to looking at what income she would have when she retires. She decides to start AVCs as she feels that any extra she can put away now could help her in 5 years’ time.

With tax relief of £4,200 and potential growth of £2,200, Hannah would have an estimated AVC fund value of £23,200 when she wants to retire.

This will give her just a little extra when she retires.

Go to our AVC calculator if you'd like to work out your own figures.

Adam is very close to retirement, and would like to benefit from tax-free cash

Current age: 63
LGPS retirement age: 65
Wants to retire: 65
Contribution years: 2
Monthly contribution: £2,000

Potential growth: £1,980
Tax relief: £19,200
Estimated AVC fund value: £49,900

 

Adam case study picture

Adam is 63 and doesn’t have an AVC plan. He would like to benefit from the tax relief available with AVCs in the short time before he retires. He works out that he could afford to save about a third of his salary each month - £2,000.

As a higher rate taxpayer, Adam benefits from tax relief of £19,200 on his AVCs and potential growth of £1,980, Adam could have an estimated AVC fund value of £49,900 at retirement. 

Adam will be able to take his AVC pot as a 100% tax-free lump sum assuming it falls within overall HM Revenue & Customs maximums and is less than 25% of his main LGPS benefits.

Go to our AVC calculator if you'd like to work out your own figures.

The figures do not take inflation into account which means that the purchasing power of your fund value will be reduced in the future. The figures assume 5% growth each year. The value of your fund can go down as well as up and you may not get back the amount you put in. 
The figures assume annual management charges of 1% each year. Actual charges may differ. Charges can vary in the future and may be higher than they are now.
 The impact of taxation and any tax relief depends on your individual circumstances and may change in the future.

AVC calculator - what could you get?

Now you are becoming more familiar with how an AVC works, use the AVC calculator below to see what your monthly contributions could turn into. By changing the figures in ‘Your details’ below you can work out how much you might need to achieve your retirement goals. The figures in ‘Your summary’ are only a guide based on the details you enter. Sample illustrations can also be found in the Key Features Illustration in the 'Apply' section of this site.

Your details

Please note you can contribute up to your 75th birthday as long as you are a member of your main pension scheme

Your summary

£0

Your estimated AVC fund value includes

£0
£0

Important information

  • The figures are for illustrative purposes only and are not guaranteed.
  • The figures assume 5% growth each year. The value of your fund can go down as well as up and you may not get back the amount you put in.
  • The figures assume annual management charges of 1% each year. Your charges may differ. Charges can vary in the future and may be higher than they are now.
  • The calculator does not take inflation into account which means that the purchasing power of your fund value will be reduced in the future.
  • The calculator does not take into account annual or lifetime allowances. Please read Important information about pensions allowances as the Government can change these allowances from time to time.
  • The tax savings are an estimate based on your chosen tax band. The tax you pay depends on your individual circumstances. HM Revenue & Customs tax rules may change in the future.

Investment choices made simple

1. Understand the simple investment options you may have to choose from

Default fund

if available

For members who don’t want to or don't feel able to choose fund(s) themselves. Check your Fund Guide to see if there's a default fund.

Lifestyle options

if available

Lifestyling aims to provide long term growth with automatic switching of your money into different funds to protect the value of your AVC pot as you get closer to taking your benefits. Have a look at your Fund Guide to see if there's a lifestyle option.

Choose your funds

This is the full range of funds available to you. You can choose any combination of these funds – up to a maximum of 10 in total.

To help you choose, watch our short video Factors to consider when choosing a fund or read our 'Interactive guide to pension funds'.

 

2. Read about the funds available to help you decide

  • Type your LGPS name into the box below to select your Fund Guide. Your Fund Guide gives useful and important information to help you decide how you want to invest your AVC pot. 
  • The options available to you are not recommendations by Prudential.
  • When choosing fund(s), there are a some things you should think about including how long you want to invest for and your attitude to risk so you can decide how you want your AVC pot to be invested.
  • If you want more information on a fund before you decide, click on the fund name in your Fund Guide and it will take you to the fund factsheet.

Choose your Fund Guide

Type your Local Government Pension Scheme name into the box below

Not sure which Local Government Pension Scheme you are a member of?

3. Make a note of your choice

  • You can make a note of your choice now so you have it to hand when you apply.

  • Don't worry, you can change your mind whenever you want - before and after you've applied.

As your AVC pot is an investment the 
value can go down as well as up and you may not get back the amount you put in.

Apply to start your AVCs

To apply online, you will need to have:
  • approximately 10 minutes
  • your LGPS name (on your statement)
  • your payroll address
  • decided how much to pay in
  • decided on your investment choice (default fund (if available), lifestyle option (if available) or self-selected funds)
  • your payslip (National Insurance number, reference number, pay, etc.)
You will need to call us if
  • you are a local councillor
  • you want to make a one-off contribution through your pay and are not paid monthly

View an example payslip

Read these documents as they give you important information about the key risks and benefits of the product to help you make a decision

We recommend that you download and save and/or print all these documents for future reference. Read instructions on how to do this.

  

Important information

Prudential has given no advice on this investment. If you are unsure as to the suitability of this product, please seek financial advice.

Apply

Our online form is easy, secure and available 24 hours a day. You don't need your bank account details - just choose your region.

England & Wales

Apply now

Northern Ireland

Apply now

Scotland

Apply now

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After you apply, you will receive a confirmation email and then you will be able to register to manage your plan online - see our Online account user guide.

Speak to a Retirement Specialist or apply by phone

If you have any questions, speak to one of our friendly Retirement Specialists based in our Reading office.

0800 032 6674

Monday to Friday from 9am to 6pm

Although they're not able to give you financial advice, they can give you factual information and chat to you about your personal situation.

* We will call you from 0800 316 4411 when we contact you about your enquiry.