AVCs
How They Work
AVCs can be a great way to help you overcome shortfalls in income that you may face in retirement, even with a final salary pension. They can help you catch up if you joined the Local Government Pension Scheme late, if you plan to retire early or simply want more money to make the most of your retirement. It’s never too early, or too late to start. Your contributions build up an additional pension pot to your employer’s pension scheme.
AVCs are tax efficient contributions made directly from your salary which qualify for tax relief, subject to HMRC limits, so for every £100 that goes into your AVC pot; the overall cost to a basic rate taxpayer is £80, with the £20 normally paid to the taxman going into your pension instead. For a higher rate taxpayer, it will only cost you £60, with £40 going into your pension instead of to the taxman.
Because your contributions (including the tax relief) are taken through payroll, this means that if you are a taxpayer, your AVC savings will get a ‘boost’ right from the start (this will be a 25% increase in the case of a basic rate taxpayer and 66% in the case of a higher rate taxpayer). How this applies to you will of course, depend on your own personal circumstances and is subject to HMRC restrictions on amounts of contributions that qualify for tax relief.
Take action today
Applying for an AVC is easier than you’d expect. In fact, it should only take you about 15 minutes. You can now apply direct over the telephone and they even fill the forms in for you. So, if you want to boost your retirement savings rather than paying tax, why not consider taking out an AVC?
Call Prudential on 0845 607 0077 (9am-6pm Mon-Fri)*
When you call
To help give you personalised information please have ready
> Your latest payslip
> Your latest Annual Benefits Statement
Advice is not available but you will receive information that will enable you to make an informed decision
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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