AVC and FSAVC schemes were introduced to allow members of pension schemes to build up additional pension benefits.


Additional Voluntary Contributions (AVCs) schemes may be offered by employer’s pension scheme. There are two main versions of AVC schemes:

  • A defined contribution AVC scheme allows you to pay additional contributions which are invested, to provide additional pension income at retirement. The additional income will depend on AVCs paid, the length of time that each contribution has been invested and investment growth over this period.
  • A defined benefit AVC allows you to buy additional months or years of membership in the employer’s pension scheme, increasing the proportion of final pensionable earnings or career average revalued earnings.

FSAVC schemes

A free-standing AVC (FSAVC) is not connected to an employer’s pension scheme, but is provided by insurance companies and are defined contribution schemes. You can commence drawing benefits from the FSAVC from the age of 55, regardless of whether or not benefits are being taken from your employer’s pension scheme.

If you are evaluating your AVC or FSAVC we strongly advise that you seek professional advice from a fully qualified and regulated Independent Financial Advisor. Pension decisions are usually a major financial decision that requires the appropriate level of advice to make the right choice. In contrast, mistakes can be costly. To arrange for a no obligations, initial free telephone consultation click here.