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PLANNING FOR RETIREMENT

Additional voluntary contributions

Workers in company schemes can make up any shortfall in pension savings with additional voluntary contributions (AVCs). They qualify for tax relief in the same way as your company scheme up to the maximum of 15% of your annual salary.

Your employer may offer an in-house scheme and normally absorbs any associated costs. Some schemes allow staff to buy back "added years" to cover gaps in their service. Most AVC's, however, work in a similar way to a money-purchase agreement.

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.