What is an AVC and what is AVC Wise?
Additional Voluntary Contributions (AVCs) are a tax-efficient way to save for retirement. They provide an opportunity to supplement your Local Government Pension Scheme (LGPS) and build up an additional retirement fund. You could take this as a tax-free lump sum, or it can be used to help you retire early.
AVC Wise facilitates a salary sacrifice Shared Cost AVC scheme that gives you the opportunity to pay AVCs in a cost-effective way. The main advantage of joining AVC Wise is that you can save money in both Income Tax and National Insurance Contributions, which makes it more beneficial for you when compared to paying AVCs in the standard way.
Your Shared Cost Additional Voluntary Contributions are paid to your employer’s current AVC provider such as Prudential or Standard Life, so if you already pay AVCs and you join AVC Wise, that won’t change.
AVC Wise work closely with employers to provide this staff benefit and are here to help you and to help manage Shared Cost Additional Voluntary Contributions through this easy to use website.What can I save?
How does it work?
Shared Cost AVCs are different to paying AVCs in the standard way because it is a shared cost arrangement, meaning both you and your employer contribute into your AVC fund.
You pay £1 per month into your AVC fund as your contribution and the remainder of your total monthly contribution amount is paid by your employer, through a salary sacrifice arrangement.
You make savings in Income Tax and National Insurance Contributions (NICs) on the amount of pay you have sacrificed. As a result, joining AVC Wise is more beneficial because your take home pay increases in a Shared Cost AVC arrangement, when compared to paying AVCs in the standard way.
What can I save?What would it mean for me?
You can choose the Shared Cost AVC amount you contribute to top up your retirement fund, as much or as little as you like. The more you contribute, the more you save. You can increase or reduce the amount as and when you need to.
If you are already paying standard AVCs, joining AVC Wise can save you money.
Use our slider tool below to work out what it means for you.
What can I save?The Salary Sacrifice Slider - How much could you save?
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SALARY SACRIFICE
AMOUNT £222.88 -
ADDITIONAL SHARED COST AVC
AMOUNT £1.00 -
MONTHLY NATIONAL INSURANCE
SAVINGS £26.75
