AVCs
How Much Can You Pay?
Contributions into the in-house AVC facility are restricted to 50% of earnings. However, the Government limits the amount that can be contributed to pension arrangements every year before incurring tax penalties. This is called the 'annual allowance'. The level of annual allowance is currently £50,000. If you exceed the annual allowance, a tax charge of up to 50% of the excess amount will be payable.
At retirement, you can take income or potentially up to 100% of your AVC pot (subject to certain overall HMRC limits) as tax-free cash giving you a lump-sum which may get your retirement off to a flying start. The money left in your pot after you've taken any tax-free cash can be used to buy an income for life (annuity) which will be taxed as income.
Your AVC pot will benefit from any growth in a largely tax-free environment, but do please remember that the value of an investment may go down as well as up and the fund value in future may be less than the payments you have made.
We’ve chosen a wide range of funds so you should be able to find one suited to your own particular attitude to risk. The Fund's AVC provider, Prudential, has been independently rated as one of the strongest in the UK and has a long history of managing the savings of local government employees, so you can be confident that your investment is in experienced hands.
Take action today
Call Prudential on 0845 607 0077 (9am-6pm Mon-Fri)*
*Calls may be recorded or monitored for quality and security purposes.
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