AVCs - your choice. Your future

New customer looking to apply?

Apply for AVCs

Existing customer looking to increase?

Increase your AVCs

It’s never too soon or too late to think about the difference you could make to your lifestyle later in life. In addition to your Local Government Pension Scheme (LGPS), Additional Voluntary Contributions (AVCs) could be just the thing to help your retirement pot go further.

Find out how AVCs could help you. We cover the basics and all the important details too. AVCs are investments so the value can go down as well as up and you may get back less than you put in.

Understanding AVCs

What's an AVC?

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

Learn more

Tax savings

Building up your AVC pot could be easier than you think.
 

Learn more

Flexible contributions

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 of 99 Administering Authorities within LGPS. 

Learn more

Case studies: how AVCs might work for you

These case studies show some typical situations, but don’t relate to any particular individuals or circumstances. They aren’t 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 savings for AVCs and salary sacrifice shared cost AVCs. If you're paying tax in Scotland, your tax savings may be different.

John has competing priorities for his money

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

Monthly tax savings with AVCs: £8
Monthly tax savings with salary sacrifice shared cost AVCs: £12.68

Potential growth: £16,300
Estimated AVC fund value: £32,100

 

John case study

John wants to start planning for retirement as he'd like to stop work a couple of years before his retirement age of 68. 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 potential growth of £16,300, this would give John an estimated AVC fund value of £32,100 when he wants to retire at 65.

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

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

Monthly tax savings with AVCs: £10
Monthly tax savings with salary sacrifice shared cost AVCs: £15.88

Potential growth: £21,900
Estimated AVC fund value: £42,300

 

Sarah case study picture

Sarah doesn’t think she needs to worry about planning for retirement. However she looks at what AVCs could give her if she contributes £50 a month until she retires, and she's surprised to see how much AVCs could add up to. 

With potential growth of £21,900, Sarah would have an estimated AVC fund value of £42,300 when she retires at 68.

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

Alex wants to retire early

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

Monthly tax savings with AVCs: £26
Monthly tax savings with salary sacrifice shared cost AVCs: £41.48

Potential growth: £12,500
Estimated AVC fund value: £40,600

 

Alex case study picture

Alex would like 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 potential growth of £12,500, Alex would have an estimated AVC fund value of £40,600 at 65 to transfer to a new product offering partial withdrawals.

He’d then be able to take partial withdrawals to help towards the loss of his salary and defer taking his main LGPS benefits until he's 67.

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

Monthly tax savings with AVCs: £30
Monthly tax savings with salary sacrifice shared cost AVCs: £47.88

Potential growth: £5,940
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 paying into AVCs, she benefits from tax savings. 

With potential growth of £5,940, Priya would have an estimated AVC fund value of £27,500 to take if she retires at 67.

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

Hannah has had a few career breaks

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

Monthly tax savings with AVCs: £70
Monthly tax savings with salary sacrifice shared cost AVCs: £111.88

Potential growth: £2,200
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 five years’ time.

With potential growth of £2,200, Hannah would have an estimated AVC fund value of £23,200 when she wants to retire at 65.

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

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

Monthly tax savings with AVCs: £800
Monthly tax savings with salary sacrifice shared cost AVCs: £839.98

Potential growth: £1,980
Estimated AVC fund value: £49,900

 

Adam case study picture

Adam is 63 and doesn’t have an AVC plan. He'd like to benefit from the tax savings 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.

With tax savings and potential growth, Adam could have an estimated AVC fund value of £49,900 when he retires at 65. 

Adam will be able to take his AVC pot as a 100% tax-free lump sum because it falls within overall HM Revenue & Customs maximums, is less than 25% of his main LGPS benefits and he’s taking his main LGPS benefits at the same time.

AVCs are investments so the value can go down as well as up and you may get back less than you put in. The figures don’t take inflation into account which means the purchasing power of your fund value will be reduced in future. The figures assume 5% growth each year. 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. Tax savings will depend on your circumstances and rules can also change. 

Investment choices made simple

1. Understand the investment options you may have

Default investment option

if available

If you’d rather not make your own investment choice, this option could be for you.

Lifestyle option

if available

This option 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.

Choose your funds

If you’re comfortable choosing your own funds, you can choose up to ten from the risk rated funds available. This could be a good choice if you’re happy being in charge of your investments and fully understand the risks involved.

2. Read about the funds available to help you decide

  • Check your Fund Guide for more information and to see which of these options are available to you. If you want information on a particular fund, click on the fund name in your Fund Guide to go to the fund factsheet.

  • It’s up to you to decide which investment option is right for your needs. Watch our ‘Understanding your investment options’ video for more information. 

  • These options aren’t a recommendation from Prudential. If you’re still unsure, speak to a financial adviser.

Choose your Fund Guide

Type your Local Government Pension Scheme name into the box below

3. Make a note of your choice

  • You need to choose which investment option you want before you apply. Once you’ve made a decision, write it down so you have it to hand when you apply.

  • And don’t worry, you can change your investment choice at any time in the future – before, or after you’ve applied.

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

Before you apply for AVCs

It takes approximately 10 minutes to apply, and you can do this online or by calling us.

To apply, you need:
  • bullet your payslip
  • bullet your investment choice
You need to call us if:
  • bullet you're a local councillor
  • bullet you want to make a one-off contribution through your pay and aren’t paid monthly

View an example payslip

You need to read the documents below before you apply. They have important information about the key risks and benefits to help you make a decision.

Download and save and/or print these documents for future reference. Read instructions on how to do this.


 

Important information

Prudential has given no advice on this investment. If you’re unsure if this product is suitable, please get financial advice.

Apply

I confirm I have read my employer information pack.

Our online form is secure. Once you start this application, any data you enter will be temporarily stored by Prudential and its business partners. The data will be deleted if you don't submit the form, unless you've asked us to contact you to help you complete it.

Salary Sacrifice Shared Cost AVC plan

Apply now

AVC plan

Apply now

If JavaScript has been disabled within your browser, the content and functionality of the online form might be limited or unavailable. Read instructions for enabling JavaScript. We'd also recommend you upgrade to the latest version of your internet browser for an optimal experience.

Once you've applied, you’ll receive a confirmation email. Remember you can register to manage your AVC plan online. Take a look at our online account user guide to see how you can get started.

Speak to a Retirement Specialist or apply by phone

You can also start your AVCs by calling our Retirement Specialist Team. They can’t give you advice, but they can help answer any questions you have about AVCs.

0800 032 6674 0800 032 6674

Monday to Friday from 9am to 5pm

To decrease your AVCs or for general enquiries about your existing AVC pot, please call our servicing team on 0345 600 0343. Lines are open Monday to Friday from 8.30am to 6pm.