To help you decide how you want to invest your AVCs, you have a choice of options. These may include:
If you’d rather not make you own investment choices this option could be for you. If your scheme offers a default investment fund, this may be a single fund or a lifestyle option.
This option is for members who want to take more or less risk than the default option. There are a range of lifestyles available which target a specific outcome as you get closer to taking your benefits.
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 investment and fully understand the risks involved.
AVCs are investments so the value can go down as well as up so you might get back less than you put in.
Additional Voluntary Contributions, or AVCs, are a separate pot of money you can build up alongside your employer’s pension scheme to give you extra retirement benefits.
One of the reasons you might choose to save for your retirement with AVCs, alongside your main scheme pension, is the tax savings they offer.
It’s important to plan for your future. You may need more money than you think when you retire as.
It’s important to regularly review your AVC pot to make sure you’re on track to achieve the lifestyle you want when you stop working.
Life isn't always as simple as we'd like it to be. Some things take us by surprise and those surprises.