How can I boost my retirement income?

You can boost your benefits at retirement by making additional regular or one-off payments, known as additional voluntary contributions (AVCs), into an AVC account.

Your AVCs will be invested in a policy with Friends Life. The benefits you receive depend on how much you invest and how your investment performs. You have a choice about how your AVCs are invested.

To start paying AVCs or to change the amount you pay, complete an AVC application form and return it to payroll. We recommend that you get independent financial advice before paying AVCs or investing in any financial product. We will not include in XTRA any AVCs you choose to pay.

Although the company does not pay into your AVC account, your AVCs will receive tax relief so they will cost less than you think. An AVC of £100 would only cost you £80 if you are a basic rate taxpayer or £60 for most higher rate taxpayers. Tax relief on all your pension savings over the year is restricted to 100% of your earnings or the annual allowance if lower.

You could consider paying any bonus you receive as an AVC to benefit from the tax relief. You must pay this direct from your salary and it is limited to the overall 80% maximum. However, you cannot pay in more than 80% of your total pay to the scheme, including the usual level of contributions.

Take a look at our AVC guide if you wish to find out more about paying AVCs.