What's an AVC?

  • 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.
  • If you’re a taxpayer you get valuable tax savings on your regular contributions, as your employer takes them from your pay before it's taxed. Tax savings will depend on your individual circumstances and rules can also change.
  • They’re easy to apply for and flexible; you can change your contributions at any time to suit your circumstances.
  • AVCs are invested in funds so they have the potential to grow over time. It also means the value can go down as well as up so you might get back less than you put in. When it comes to choosing where to invest your AVCs, there’s no need to feel overwhelmed. The 'Investment choices' section of this site will take you through your investment options to help you make a decision.
  • The size of your AVC pot will depend on how much you pay in, how long you pay in for, the impact of costs, charges, and how well the fund(s) you invest in perform. Even if you stop your contributions, charges will continue to be taken.
  • You have a number of options to choose from when you decide to take money from your AVC pot, which you can currently do from age 55, or possibly earlier if you're in ill health. This would usually depend on you meeting the ill-health requirements of your main scheme pension.

For more information on the risks, benefits, charges and costs of the product and funds, please read your Key Features document and your Fund Guide to help you make a decision. These are available online or from your employer/scheme administrator.

More information

Existing customers

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.

Flexible paying in, flexible paying out

Life isn't always as simple as we'd like it to be. Some things take us by surprise and those surprises.

How AVCs could help you

It’s important to plan for your future. You may need more money than you think when you retire as.

Investment choices

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.

AVCs and tax savings

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.