Increase your Additional Voluntary Contributions if you'd like the chance to retire early or retire with more money

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Increase your AVCs

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How often do you check your Additional Voluntary Contribution (AVC) pot? 

Whatever you want to do when you stop working, make sure you’re on track to secure the kind of lifestyle you want.

Give yourself a reminder of 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. 

 

 

Your AVCs

Your AVCs

Your AVC pot could provide you with extra in retirement.

Learn more

Tax savings

Adding to your AVC pot could be easier than you think.

Learn more

Flexible contributions

Change your contributions to suit your needs and circumstances.

Learn more

Changing your investment

Check your investment choice online and switch whenever you want to.

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 the LGPS.

Learn more

Case studies: how topping up AVCs might work for you

These case studies show some typical situations, but don’t relate to any particular individuals or circumstances. The figures are from our AVC top up calculator for illustration purposes only and cannot be guaranteed. The monthly contribution figures are gross which means they include the tax savings. If you're paying tax in Scotland, your tax savings may be different.

Gwen started small and now wants to increase her contributions

Age started contributions: 31
Contribution years to date: 13
Current monthly contribution: £50
Current estimated AVC fund value: £10,100

Age at retirement: 67
Remaining contribution years: 23
Increase to monthly contribution: £50
New total monthly contribution: £100

Estimated AVC fund value at retirement based on current contributions: £46,900
Estimated AVC fund value at retirement based on new contributions: £69,200

Gwen case study image

Gwen had very little spare cash for AVCs when she started paying in at 31. She had just bought a house with her partner, but wanted to put something away for when she stopped work at 67. Gwen started saving £50 a month and now, 13 years later, she feels she can afford to put in a bit more.

If Gwen keeps saving £50 a month, her estimated fund value on retirement at age 67 would be £46,900. If she increases her contributions to £100 a month, her estimated fund value would be £69,200.

Starting with a small amount gave Gwen some peace of mind knowing that she was planning for her future.

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

Oliver had other priorities for his spare cash

Age started contributions: 44
Contribution years to date: 5
Current monthly contribution: £75
Current estimated AVC fund value: £4,970

Age at retirement: 65
Remaining contribution years: 16
Increase to monthly contribution: £45
New total monthly contribution: £120

Estimated AVC fund value at retirement based on current contributions: £29,200
Estimated AVC fund value at retirement based on new contributions: £41,200

Oliver case study image

Oliver didn’t start AVCs until he was 44 because he had a mortgage to pay, and two children at university.

Now, five years later, his children have graduated and he’s able to put in a little more. The current value of his AVC pot is estimated at £4,970. He hopes to build up the value of his AVC pot and retire two years early at the same time as his wife. As he'll lose some of his main LGPS benefits by retiring early, he wants to build up his AVC pot before he leaves.

If Oliver continues saving £75 a month, his estimated fund value at retirement would be £29,200. If he increases his contributions to £120 a month, his estimated AVC fund value at retirement would be £41,200.

Oliver will be able to use the AVC pot to help make up any reduction in his LGPS benefits and he’ll be able to take it all as 100% tax-free cash when he retires at 65. This assumes the value of his AVC pot would fall within overall HM Revenue & Customs maximums, is less than 25% of his main LGPS benefits and that he's taking his main LGPS benefits at the same time.

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

Maria wanted to retire early

Age started contributions: 48
Contribution years to date: 7
Current monthly contribution: £400
Current estimated AVC fund value: £38,600

Age at retirement: 64
Remaining contribution years: 9
Increase to monthly contribution: £250
New total monthly contribution: £650

Estimated AVC fund value at retirement based on current contributions: £106,000
Estimated AVC fund value at retirement based on new contributions: £138,000

 

Maria case study image

Maria lives on her own and has decided she’d like to retire early. She knows that by doing this her main scheme benefits will be reduced, as she’d be retiring before her normal pension age.

She started AVCs so she’d have a little extra when she stops working and, after reviewing her AVC pot, has decided to top it up before she retires.

If Maria keeps saving £400 a month, her estimated fund value at retirement would be £106,000. If she increases her contributions to £650 a month, her estimated fund value would be £138,000.

Maria’s AVC pot should give her a little extra to make up for the reduction in her main pension benefits, as she will retire at 64 rather than 67.

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

Retirement felt like a lifetime away when Ali started her AVCs

Age started contributions: 34
Contribution years to date: 25
Current monthly contribution: £120
Current estimated AVC fund value: £60,800

Age at retirement: 67
Remaining contribution years: 8
Increase to monthly contribution: £100
New total monthly contribution: £220

Estimated AVC fund value at retirement based on current contributions: £96,400
Estimated AVC fund value at retirement based on new contributions: £107,000

Ali case study image

When Ali started AVCs over 20 years ago, she couldn’t imagine a time when she’d be retiring. But now retirement is just a few years away, she reviews her AVC pot and decides to increase her monthly contributions to make the most of the tax savings.

If Ali carries on saving £120 a month, her estimated fund value at retirement at age 67 would be £96,400. If she increases her contributions to £220 a month, her estimated fund value would be £107,000.

Now that she’s getting closer to the end of her career, Ali feels she should increase her AVCs to help her achieve the lifestyle she wants.

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

Dan was late starting AVCs

Age started contributions: 52
Contribution years to date: 8
Current monthly contribution: £200
Current estimated AVC fund value: £22,500

Age at retirement: 66
Remaining contribution years: 6
Increase to monthly contribution: £300
New total monthly contribution: £500

Estimated AVC fund value at retirement based on current contributions: £44,600
Estimated AVC fund value at retirement based on new contributions: £68,900

Dan case study image

Dan only started paying AVCs eight years ago when he was 52, as he wanted to make the most of the tax savings and any potential growth.

He’s decided to increase his contributions for six years he has left before he retires. This should give him and his partner some extra money to live on.

If Dan keeps saving £200 a month, his estimated fund value on retirement at age 66 would be £44,600. If he increases his contributions to £300 a month, his estimated fund would be £68,900.

Just making a little change could make a difference to the value of Dan’s AVC pot at retirement and he’ll be benefiting from tax savings while he’s making his contributions.

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

Anil wanted some extra cash at retirement

Age started contributions: 59
Contribution years to date: 4
Current monthly contribution: £175
Current estimated AVC fund value: £9,100

Age at retirement: 65
Remaining contribution years: 2
Increase to monthly contribution: £150
New total monthly contribution: £325

Estimated AVC fund value at retirement based on current contributions: £14,200
Estimated AVC fund value at retirement based on new contributions: £17,900

Anil case study image

Anil started AVCs so he’d have an additional pot of money when he retires at age 65.

He doesn’t want to access his AVC pot for a couple of years until his grandchildren need help repaying student loans. He decides to increase his contributions, knowing he can access his AVC pot after he’s retired.

If Anil increases his contributions from £175 to £325 a month, his estimated fund value at retirement at age 65 would be £17,900. Anil knows if he increases his contributions now, his AVC pot could have more time to grow until he’s ready to access it.

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

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.

AVC top up calculator - what difference could a little extra make?

You know or can easily find out how much you have in your AVC pot, so why not use the top up calculator to see what an increase to your monthly contributions could turn into. The figures in 'Your summary' are only a guide based on the changes you make to 'Your details' below. For illustrations, please read the Key features illustration document in the 'Increase your AVCs' section of this site.

Your details

How do I find this?

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

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Your summary

£0
£0

Your new estimated AVC fund value includes

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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 you pay depends on your individual circumstances. HM Revenue & Customs tax rules may change in the future.

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 choices, 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

  • Review your current investment choice, and if you’d like to change it, read your Fund Guide. This will give you more information about the options and funds available. 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

  • Once you’ve made a decision, write it down so you have it to hand. You can change your investment choice online or by calling 0345 600 0346 Monday to Friday between 8.30am and 6pm.
  • And don’t worry, you can change your investment choice at any time in the future.

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 increase your AVCs

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

To increase, 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 increase. 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.

If you've changed employment since your last AVC payment, you’ll need to apply for a new AVC plan. Changes to employment are:

  • 
Leaving an employer and returning at a later date under a new contract.

  • Moving to a different employer under a voluntary or TUPE transfer.
  • Your AVC pot is taken as part of a flexible retirement and your role has changed.

  

Ready to increase your AVCs?

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.

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 increased your AVCs, you’ll receive a confirmation email. Remember you can go online to manage your AVC plan. Take a look at our online account user guide to see how you can get started.

Speak to a Retirement Specialist to increase your AVCs by phone

You can also increase your AVCs by calling our Retirement Specialist Team. They can’t give you advice, but 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.