Additional Voluntary Contributions (AVCs or FSAVCs)

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Additional Voluntary Contributions (AVCs or FSAVCs)

A popular way of topping up pension funds has for a number of years been through additional voluntary contributions or AVCs. They are cost and tax effective answer to help you make the most of your retirement.

There are 2 types of AVC.

In-house AVC

Offered to you by your employer. Contributions can be deducted weekly or monthly from salary before tax.

You can own as many AVCs as your employer offers, however, contributions will be stop if you change your employer.

Free Standing AVC (FSAVC)

Independent of your employer and offered by organisations such as building societies or life assurance companies. An ideal option for job hoppers since the AVC provider will remain constant regardless of changes in employment.

In this case the tax deducted from your gross contributions will be reclaimed on your behalf the provider. You can have an FSAVC with one provider each year.

Following the 2006 pension changes, AVCs and FSAVCs could become even more popular as 25% of all pension funds may be taken as a tax-free lump sum.

To find out if AVCs could be the best way to supplement your pension funds, please complete the Quick Enquiry Form above and we will arrange for a financial adviser to contact you.