Your AVCs. Your future.

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Apply for an AVC plan

Existing customer looking to increase?

Increase your AVC pot

 

Whether you're close to retirement or it's still a long way off, it's never too early to start thinking about the kind of lifestyle you want. And it's never too late to make a difference.

In addition to your NHS Pension Scheme, Additional Voluntary Contributions (AVCs) could be just the thing to give you extra retirement benefits.

To understand how AVCs work, please read 'What's an AVC?'.

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

How AVCs could help your retirement

What's an AVC?

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

Learn more

Tax savings

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

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 one of the official AVC providers to the NHS Pension Scheme.

Learn more

Case studies - how increasing your 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 savings. If you're paying tax in Scotland, your tax savings may be different.

Nitika has competing priorities for her money

Current age: 34
Wants to retire: 68
Contribution years: 34
Tax Band: Basic
Monthly contribution
: £100

Potential growth: £43,900
Tax savings: £8,160
Estimated AVC fund value: £84,700

Nitika case study picture

When Nitika first starts working, she has student loans to pay off and doesn't feel she has the money for AVCs as well. Now although she still doesn't have much spare cash, she decides to start AVCs so she may have the option to retire earlier in the future.

Contributing £100 a month could give Nitika an AVC pot of £84,700 when she retires at age 68. By saving into AVCs, she makes tax savings on all her AVCs at the basic rate. And because the contributions are flexible, she knows she can increase, decrease or stop the contributions if she needs to. If contributions stop, charges will continue to be deducted.

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

 

Mike feels like retirement is still a long way off

Current age: 39
Wants to retire: 65
Contribution years: 26
Monthly contribution: £150

Potential growth: £34,000
Tax savings: £9,360
Estimated AVC fund value: £80,800

Mike case study picture

Mike wasn’t sure about saving into an AVC pot but he was surprised to see how much the contributions from his pocket could amount to when the tax saving and potential investment growth is added on. As a basic rate taxpayer, the actual cost to Mike of his monthly contribution is £120.

Making these contributions could give Mike an AVC pot of £80,800 by age 65, which would give him some extra money when he retires to help pay off the mortgage, take or trip or just have some spare cash for little extras.

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

 

Galeeb wants to leave service as early as possible

Current age: 43
Wants to leave service: 55
Contribution years: 12
Tax Band: Basic
Monthly contribution: £350

Potential growth: £13,800
Tax savings: £10,000
Estimated AVC fund value: £64,200

Galeeb case study picture

Galeeb wants leave service at age 55 without taking his pension until age 60. He decides to put some money into an AVC pot. Although £350 seems like a stretch for him, the actual cost to Galeeb is £280 a month. By paying into an AVC, he makes tax savings on his contributions at the basic rate.

With his AVC pot potentially worth £64,200, Galeeb will be able to use this to live on before taking his NHS pension five years later.

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

 

Emma took time off to look after her children 

Current age: 48
Wants to retire: 66
Contribution years: 18
Tax Band: Basic
Monthly contribution
: £200

Potential growth: £19,300
Tax savings: £8,640
Estimated AVC fund value: £62,500

When Emma first started working for the NHS she didn’t start AVCs as she didn’t have the money. She then took a break to have children. Now she’s back at work, she wants to start AVCs so she has a pot of money she can access from age 55.

By paying in £200 a month for 18 years, AVCs could give Emma an AVC pot of £62,500 by age 66 although if she accesses it from 55, her AVC pot would have a different value. Depending on the choices she makes, this would provide her with an additional income and lump sum on top of her NHS pension.

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

Andreas wants to make the most of tax savings

Current age: 51
Wants to retire: 60
Contribution years: 9
Tax band: Higher
Monthly contribution: £450

Potential growth: £9,640
Tax savings: £19,400
Estimated AVC fund value: £58,200

Andreas - case study image

Andreas is aware that as a higher rate taxpayer, his tax savings could make a significant difference to the potential value of his AVC pot, even though he’s only starting it nine years before retiring.

The tax savings could contribute to a third of the value of Andreas’ total estimated AVC pot value of £58,200 when he retires at age 60.

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

 

Pat is worried that it’s too late to start AVCs

Current age: 55
Wants to retire: 60
Contribution years: 5
Tax band: Basic
Monthly contribution
: £500

Potential growth: £3,150
Tax savings: £6,000
Estimated AVC fund value: £33,100

Pat case study picture

Pat’s children have left home and now she’s not supporting them, she feels able to make large AVCs but isn’t sure if it will be worth it. She’s prepared to put in £500 a month and realises that the cost to her is only £400 a month because of tax savings as a basic rate taxpayer.
 
This feels much more manageable and she will have a potential AVC fund value of £33,100 to spend as she wishes when she retires and takes her AVC pot and NHS pension at 60.

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 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 savings 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. For illustrations, please read the Key features illustration document 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. Tax rules may change in the future.

Investment choices made simple

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

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

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, read our 'Interactive guide to pension funds'.

 

2. Read about the funds available to help you decide


  • 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 some things you should think about including how long you want to invest for and your attitude to risk.
  • 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.

3. Make a note of your choice


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

  • Don't worry, you can always 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 AVC

To apply online, you will need to have:
  • bullet approximately 10 minutes
  • bullet your employer scheme name, etc.
  • bullet your payroll address
  • bullet decided how much to pay in
  • bullet decided on your investment choice (default fund, lifestyle option or self-selected funds)
  • bullet your payslip (National Insurance number, reference number, pay, etc.)
You will need to call us if
  • bullet you want to make a one-off contribution through your pay and are not paid monthly
  • bullet you want to contribute more than 80% of your gross regular pensionable pay or exceed the £40,000 annual allowance.
  • bullet you want to make a one-off contribution by cheque

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.

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. 

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 about starting or increasing AVCs, speak to one of our friendly Retirement Specialists based in our Reading office.

0800 640 9145

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 AVC, 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.