AVCs

What are AVCs?

Additional Voluntary Contributions (AVCs) are a great way to give your pension savings a boost.

In summary, AVCs are flexible contributions that you can pay into the Fund which are managed separately by Aviva.

The Fund is a final salary scheme which is a type of Defined Benefit (DB) scheme and being a member is a great start. However, you can boost your savings even further, meaning more money for you to enjoy in retirement.

Because you may be able to benefit from tax savings, making AVCs could cost less than you think, and can make a big difference to your income at retirement.

Unlike your main contributions to the Fund, AVCs are completely flexible, meaning you choose how much you want to contribute (up to certain limits). You can also decide how these contributions are invested.

Find out more about investing your AVCs

Benefits of making AVCs

• For most people, AVCs are a tax-efficient way to save more for your retirement.
• While there are limits to what you can save tax-free, making a small increase in AVCs today is a great way to make a big difference to tomorrow.
• You're in control as AVCs are flexible. It's up to you how much you contribute.
• AVCs are usually made through our salary exchange arrangement and members generally enjoy higher net take-home pay than many other similar pension arrangements.

I want to start making AVCs

If you're already making AVCs, you can check them by logging into Aviva. You can make changes to your AVCs at any time - simply contact us for the relevant form.

I want to start making AVCs

Thinking about making AVCs? That's great! AVCs are a great way to boost your retirement savings.

You can use the Pension calculator from MoneyHelper to explore how much you're on track to receive at retirement, both with and without AVCs.

You can experiment with different amounts to see what impact making AVCs can have on your retirement income. This can help you decide how much you want to contribute in AVCs and will help you see whether or not you're on target for the retirement income you want.

Ready to start making AVCs? Simply fill in and return the AVC Application Form to the pensions department at the address given on page one of the form.

Remember, to keep checking in on your estimated retirement income by comparing your annual benefit statements. You can track your savings and projections in your statement and consider whether you can save even more.

Investing my AVCs

With AVCs, you are in charge of how much you want to contribute. You are also in charge of deciding how your contributions are invested.

Unlike your main contributions to the Fund, your AVCs are invested into an individual account just for you, which is managed by Aviva. Your AVC account contains only your contributions and is invested to help those contributions grow over time.

You decide how your AVCs are invested, but don't worry - you don't have to be an investment expert. Whether you are a confident investor, a risky investor, a cautious one, or you're completely unfamiliar with investments in general, there's an investment option for you.

The Abbott pension team can give you information and explanations of the investment choices available to you. However, if you require financial advice you will need to seek it from a regulated financial adviser. You can find an adviser by visiting the Money Advice Service's website.

Whatever investment fund or funds you select, you can also use the 'lifestyling' facility. If you choose lifestyling, over the five years leading up to your retirement date your investments will be gradually moved into the cash fund. This helps to protect you against any sudden falls in investment values in the period leading up to your retirement when exposure to market volatility might be less suitable for you. Remember to tell Aviva if your intended retirement age is different from age 65 to ensure your lifestyling is tailored to your plans.

You can find out more about this in this How your contributions are invested booklet.

Pensions are invested for the long term. Investing your account in the right funds at the right time gives it the opportunity to grow over time rather than it sitting static at the risk of losing value. However, there's always an element of risk involved with investing and the value of your account could go up or down.

Want to find out more about pension investments? Read an overview from MoneyHelper.

To find out about the different AVC investment options available to you through Aviva, or to make changes to the way any of your existing Abbott AVCs are invested, log in to your Aviva member portal.