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Whether you're hoping to retire early or with more money, are you checking your Additional Voluntary Contribution (AVC) pot regularly?
If you want to remind yourself about the basics of AVCs, read 'Your AVC pot'.
Whatever you want to do when you stop working, make sure you are on track to secure the kind of lifestyle you want.
AVCs are investment based so the value can go down as well as up and you may get back less than you put in.
Case studies - how topping up AVCs might work for you
These examples represent typical situations and do not 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 had very little spare cash for AVCs when she started them as she and her partner had just bought a house. She did want to put something away for when she stopped work so she started paying AVCs of £50 a month. The value of her AVC pot is currently estimated as £10,100 and now she feels she can afford to put in a bit more.
If Gwen keeps saving £50 a month her estimated fund value at retirement would be £46,900. By increasing her contributions to £100 every month, Gwen’s estimated AVC fund value at her retirement age of 67 would be £69,200.
Even though Gwen started with a small amount, she has peace of mind knowing that she is 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
With a mortgage, bills and his family to look after, Oliver didn’t start his AVCs until he was in his forties. The current value of his AVC pot is estimated at £4,970 and he’s now able to put a little more away. He wants to do this as he hopes to stop working two years early, at the same time his wife retires. 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 keeps saving £75 a month his estimated fund value at retirement would be £29,200. By increasing his contributions to £120 a month, Oliver’s estimated AVC fund value at retirement would be £41,200.
Oliver’s AVC pot should help towards any reduction in his main LGPS benefits and he would be able to take it all as 100% tax-free 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 started AVCs so she would have another option at retirement. Three years ago, after reviewing her main LGPS benefits and her AVC pot, she decided that she’d like to retire early. She’s now going to increase her AVCs to help give her AVC pot, currently estimated at £38,600, a boost.
If Maria keeps saving £400 a month her estimated fund value at retirement would be £106,000. By increasing her contributions to £650 a month, Maria’s estimated AVC fund value at retirement would be £138,000.
Her main LGPS benefits will be reduced because she will retire at 64 rather than 67, but her AVC pot should help towards this if she transfers it to another plan offering partial withdrawals when she retires.
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
When Ali started her AVCs 20 years ago, she just couldn’t imagine retirement. But now it’s less than ten years away so she reviews her current AVC pot which is estimated as £60,800 and decides to increase her monthly contributions. This is to make the most of the tax savings she’s entitled to as a higher rate taxpayer.
If Ali carries on saving £120 a month, her estimated fund value at retirement would be £96,400. By increasing her contributions to £220 a month, Ali’s estimated AVC fund value at retirement would be £107,000.
Ali’s AVCs have benefitted from and will continue to benefit from tax savings until she takes it along with her main LGPS benefits when she stops work at 67.
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
Although Dan only started paying into his AVC pot eight years ago, the estimated value today is £22,500. He wants to make the most of any tax savings and potential growth so he decides to increase his AVCs for the next six years. This should give him some extra money when he retires.
If Dan keeps saving £200 a month, his estimated fund value at retirement would be £44,600. By increasing his contributions to £500 a month, Dan’s estimated AVC fund value at retirement would be £68,900.
Just a little change should make a difference to the value of Dan’s AVC pot at retirement, and he will be able to take his AVC pot at 66 as a 100% tax-free lump sum assuming the value is less than 25% of his main LGPS benefits.
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 started AVCs so he would have a tax-free lump sum when he retires. The value of his AVC pot is estimated as £9,100 and, as he’s got a couple of years before retiring, he increases his contributions.
If Anil keeps saving £175 a month, his estimated fund value at retirement would be £14,200. By increasing his contributions to £325 a month, Anil’s estimated AVC fund value at retirement would be £17,900.
He will be able to take his full AVC pot tax-free at 65 along with his main LGPS benefits and he can spend it on his children and grandchildren.
Go to our AVC top up calculator if you'd like to work out your own figures.
AVCs are investment based so the value can go down as well as up and you may get back less than you put in.
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 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 impact of taxation and any tax relief depends on individual circumstances and may change in the future.
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.
Default investment option
For members who don’t want to choose themselves. Check your Fund Guide to see if there's a default investment option.
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 ten in total.
To help you choose, read our 'Interactive guide to pension funds'.
2. Read about the funds available
- Check your AVC pot online and then, to review details of the fund(s) you're invested in, type your LGPS name into the box below to select your Fund Guide. Your Fund Guide gives important information to help you decide how you want to invest your AVC pot. The options available 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.
- Remember, if you want more information on a fund, click on the fund name in your Fund Guide and it will take you to the fund factsheet.
Choose your Fund Guide
- Bedfordshire Pension Fund Berkshire Pension Fund Bexley Council Buckinghamshire County Council Cambridgeshire County Council Pension Fund Cardiff & Vale of Glamorgan Pension Fund City and County of Swansea Pension Fund City of London Pension Fund Clwyd Pension Fund Croydon Council Pension Fund Cumbria Pension Scheme Derbyshire County Council Pension Fund Devon County Council Pension Fund Dorset County Council Pension Fund Durham County Council Pension Fund Dyfed Pension Fund East Riding Pension Fund East Sussex County Council Pension Fund Environment Agency Active Pension Fund Essex County Council Pension Fund Falkirk Council Pension Fund Fife Council Pension Fund Gloucestershire County Council Pension Fund Greater Manchester Pension Fund Hampshire Pension Fund Highland Council Pension Fund Isle Of Wight Council Pension Fund Kent County Council Pension Fund Lancashire County Pension Scheme Leicestershire County Council Pension Fund Lincolnshire County Council Pension Fund London Borough Of Barking & Dagenham Pension Fund London Borough of Barnet Pension Fund London Borough of Brent Pension Fund London Borough of Camden Pension Fund London Borough of Enfield Pension Fund London Borough of Hackney Pension Fund London Borough of Haringey Pension Fund London Borough of Harrow Pension Fund London Borough Of Havering Pension Fund London Borough Of Hillingdon Pension Fund London Borough of Islington Pension Fund London Borough of Lambeth Pension Fund London Borough Of Merton Pension Fund London Borough of Sutton Pension Fund London Borough Of Wandsworth Pension Fund London Pensions Fund Authority Lothian Pension Fund Merseyside Pension Fund Norfolk County Council Pension Fund North East Scotland Pension Fund North Yorkshire County Council Pension Fund Northamptonshire County Council Pension Fund Northern Ireland Local Government Pension Scheme Northumberland County Council Pension Fund Nottinghamshire County Council Pension Fund Orkney Islands Council Pension Funds Oxfordshire County Council Pension Fund Powys County Council Pension Fund Rhondda Cynon Taff Pension Fund Royal Borough of Kensington & Chelsea Pension Fund Shetland Islands Council Pension Fund Shropshire County Pension Fund Somerset County Pension Fund South Yorkshire Pension Fund South Yorkshire Transport Authority Pension Fund Strathclyde Pension Fund Surrey County Council Pension Fund Tayside Pension Fund Teesside Pension Fund Tyne & Wear Pension Fund West Midlands Pension Fund West Yorkshire Pension Fund Wiltshire Pension Fund
Not sure which Local Government Pension Scheme you are a member of?
3. Increasing or changing your investment choice?
- To increase your AVCs without changing your investment choice, just fill in the online form in the 'Increase your AVCs' section.
- To change your existing investment choice or redirect future contributions, make a note of your changes and then call us on 0345 600 0343 Monday to Friday between 8.30am and 6pm.
Your AVC pot is an investment and the value can go down as well as up and you may not get back the amount you put in.
Increase your AVCs
To increase your AVCs online, you will need to have:
- bullet approximately 10 minutes
- bullet your LGPS name (on your LGPS statement)
- bullet the date you started your AVC pot
- bullet the name of the scheme you are a member of
- bullet decided how much to pay in
- bullet your payslip (National Insurance number, reference number, pay, etc.)
You will need to call us if:
- bullet you are a local councillor
- bullet you want to make a one-off contribution through your pay and are not paid monthly
Read these documents as these 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.
Ready to increase your AVCs?
Our online form is easy, secure and available 24 hours a day.
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. See instructions for enabling JavaScript. We would also recommend you upgrade to the latest version of your internet browser for an optimal experience.
Once you've increased your AVCs you will receive a confirmation email and remember you can go online at any time to manage your plan - see our Online account user guide.
Speak to a Retirement Specialist to increase your AVCs by phone
If you have any questions about increasing or starting AVCs, speak to one of our friendly Retirement Specialists based in our Reading office.
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.
For general enquiries about your existing AVCs, please call our servicing team on 0345 6000 343. Lines are open from 8.30am to 6pm Monday to Friday.
* We will call you from 0800 316 4411 when we contact you about your enquiry.