AVCs
Additional Voluntary Contributions
Within the LGPS there are provisions for increasing your pension and/or lump-sum, and one of the methods is by making additional voluntary contributions (AVCs).
AVCs attract tax relief before tax and NI are applied, so the actual cost to you, dependant upon the level of tax you pay, can be around 80% of the sums invested.
The LGPS is unique amongst public sector pension schemes, in allowing members to take up to 100% of their AVCs in tax-free cash, subject to overall HMRC restrictions, and this provision has led to a significant increase in the levels of AVC applications and contributions.
Whatever your position, providing you are a taxpayer, this is an opportunity that you may wish to consider, even if you decide it’s not for you.
Prudential is the UK’s No.1 AVC provider. They have a dedicated team who can discuss the fund range with you, help you apply, top-up or restart your contributions.
Here’s some great reasons why you should give Prudential a call to discuss Additional Voluntary Contributions:
> UK based team dedicated to answering your calls – they can even call you back at a time to suit you
> You can ask to speak to the same person each time you call
> No obligation
> Knowledgeable of the Local Government Pension Scheme
> Experts in AVCs – They can calculate illustrations of the tax-free cash and income you could receive, based on your individual circumstances
> They can set up your AVC quickly and paperless over the phone, no direct debits required
> Help you understand your fund options
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