Over 55? Use AVCs to secure your retirement

For LGPS members who have retirement on the horizon, now is the time to start thinking about how to secure your financial future and enjoy the retirement you deserve.

Shared Cost Additional Voluntary Contributions (Shared Cost AVCs) can help you make every payday until your retirement count, and is a valuable and cost-effective opportunity to invest in your life and plans after work.

Here’s how Shared Cost AVCs could benefit you:

• Contributing £100 will cost a basic rate taxpayer £72.08*, an immediate saving of £27.92 before it’s invested
• It’s not too late to start – contributing £100 per month for the next decade could leave you with £13,974.14 in your pot, and only cost you £8,649.60, thanks to the available Income Tax and National Insurance contribution savings†
• Even better news, when you do retire, you have the option to take your pot back as a tax-free lump sum‡

Ready to find out more? The My Money Matters Financial Education Coaches are on hand to support you at their webinar, titled ‘Over 55? Avoid retirement regret’

• Tuesday, 16 July at 12pm and 5pm

To book your place onto a session, visit My Money Matters and log in or register.

Don’t delay, apply or amend today. Complete your application or top up your plan.

*Basic rate savings are displayed as a guide only. Basic rate assumes an individual paying 20% Income Tax and 8% National Insurance contributions. The actual savings will depend on your personal circumstances and investment fund performance, which is invested by your Shared Cost AVC provider. 

†Figures are for illustrative purposes only. The figures shown are only estimates based on limited assumptions and assume a net assumed growth rate of 3%. They do not include the impact of inflation and are not guaranteed or a personal recommendation. 

‡Please note, you can take all or part of your Shared Cost AVC plan as a tax-free lump sum as long as you take it at the same time as your main scheme benefits, and it does not exceed 25% of the combined value of your plan and your main scheme benefits. There are also alternative options to choose from when it comes to taking your benefits. These options could include drawdown, buying an annuity, taking the pot in one lump sum (subject to Income Tax) or taking ad hoc withdrawals. Contact your pension scheme or your financial advisor to know more about these options.