What are Additional Voluntary Contributions (AVCs)?

Any employer that offers an occupational scheme must usually also offer staff the chance to save more if they wish through AVCs. (Sometimes an employer may make a contribution as well, though this is very rare.)

Your AVCs are normally used to buy an additional 'money purchase' pension. It is like having an extra personal pension on top of your occupational scheme. Because an AVC pension is arranged through your employer this may well have lower charges than an ordinary personal pension. You can have both a stakeholder pension and AVCs. AVCs are usually a good way of topping up your pension.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.