An Additional Voluntary Contribution (AVC) plan is set up by an employer for employees to make further contributions to potentially build up additional retirement benefits. It's designed to sit alongside the main company pension scheme.
For most AVCs, the contributions are invested and so, the longer you pay into in an AVC and the higher the contribution, the more likely that you'll receive additional income when it comes to retirement. You might also be able to take the money from age 55 either before, at the same time as, or after your main scheme (subject to the scheme rules).
An AVC is an investment based product and so the value can go down as well as up and you might get back less than you put in. What you get back will depend on the fund chosen and how it performs.
Check with your employer to see if they offer an AVC plan.
The above is based on our current understanding of current tax legislation, HM Revenue & Customs practice and scheme rules, all of which may change without notice. The impact of taxation (and any tax relief) depends on individual circumstances.
FSAVCs are similar to additional voluntary contributions and are also designed to sit alongside your company pension. The difference is that instead of the employer setting up the plan and deducting contributions from your salary, you set it up through a pension provider and the FSAVCs are collected from you directly.
If you're a member of a public AVC scheme, please visit your AVC scheme website below.
If you're a member of a company that has a Group AVC plan with Prudential, please visit GAVC. Or check with your employer to see if they offer a plan.