Additional Voluntary Contributions (AVCs)

AVCs are contributions paid in addition to the normal contributions required from members of company pension schemes, to provide extra pension benefits.

There are lots of reasons why someone might want extra pension benefits.

For example: to retire early or provide additional benefits for a spouse or other dependants on death.  Someone without much pension because of changing jobs might want to pay AVCs to improve their financial circumstances in retirement.

Occupational Schemes are not now  required to have an AVC option.  Anyone can now have a stakeholder pension in addition to a company pension, and so may contribute to a stakeholder rather than an AVC arrangement.