Shared Cost AVCs offer a variety of key benefits including:
- making tax and National Insurance contribution savings on the money you add to your Shared Cost AVC pot
- you can choose and change how much you contribute at any time, starting from as little as £2 per month
- you can access your pot of money from age 55 onwards, meaning you could retire early.
Here's an example of how a basic rate taxpayer could benefit:
With a Shared Cost AVC, you could save £100 a month but it would only cost you £72.08. That’s an immediate value increase of 38% before the money is even invested.*
You can find out more about Shared Cost AVCs by visiting the My Money Matters Knowledge Hub. There are also webinars specifically for LGPS members where you can find out more detail about how Shared Cost AVCs work. Just register on the site, if you haven't already, and you'll be able to book onto one.
* Figures for illustrative purposes only. These figures are only estimates based on limited assumptions. The figures assume a net assumed growth rate of 3%. They don't include the impact of inflation and aren't guaranteed or a personal recommendation. Basic rate savings are displayed as a guide only. Basic rate assumes an individual paying 20% Income Tax and 10% National Insurance contributions. Actual savings depend on personal circumstances and investment fund performance, which is invested by your Shared Cost AVC provider.