Boost your pension with additional voluntary contributions (AVCs)

Voluntary pension contributions are where you pay in more than the minimum required by your scheme. This can mean you’ll have more money to live off when you’re ready to retire.  

You can also boost your State Pension by paying to fill gaps in your National Insurance record.

If you can afford to, paying extra into your pension can:

• give you more money for a comfortable retirement

• let you decide how much and how often to pay in – or when to stop

• mean you pay less Income Tax, as you usually get tax relief on your pension contributions. 

Here are the additional benefits you’ll typically get, depending on the type of pension you have.

If you have a defined contribution pension, the amount it will pay you in retirement largely depends on:

• how much is paid in
• how well the investments perform
• how and when you choose to take the money. 

By paying extra in, you’re more likely to grow your retirement savings – especially if the money will stay invested for a number of years before you plan to take it. 

But, like all investments, your pension can rise and fall in value until you take the money – so there’s no guarantee your pot will grow.

You can use our Pension calculator to see how extra contributions might change your potential retirement income.

If you’re employed, increasing your pension contributions might also mean your employer will pay more into your pension as well. Find out more in our guide about contribution matching. 

If you have a defined benefit pension, the amount you’ll get in retirement depends on your salary and how long you worked for that employer. 

If your scheme lets you make additional voluntary contributions (AVCs), check if you’ll be paying into either a:

• defined benefit AVC scheme – where your extra contributions will go into your existing pension to give you extra guaranteed benefits or income 

• defined contribution AVC scheme – where you’ll grow a separate pot of money that’s invested, so it can rise and fall until you take it. 

For defined benefit AVC schemes, common perks might include:

• added years – so your pension income is calculated based on a longer service record

• a better accrual rate – so your pension income is calculated on a higher proportion of your salary 

• extra pension income – your AVCs will give you another amount of guaranteed income each month 

• a larger tax-free lump sum – your AVCs might allow you to take a lump sum when you retire without reducing your future regular income

• an earlier retirement date – so you can take your full pension before you reach your scheme’s normal retirement date.

For defined contribution AVC schemes, you can usually choose how and when you want to take your pot of money.

For example, you could take it all in one go, as multiple lump sums, convert it into guaranteed income or a mixture. 

For more information, see our guide What can I do with my pension pot?

Before making voluntary pension contributions, make sure you can afford to keep the money locked away until you’re at least 55 (57 from April 2028) – this is the earliest you can usually take your pension money.

You might have to wait longer if you have a defined benefit AVC scheme, as these often won’t start paying out until you reach your scheme’s normal retirement age. This is often the same as your State Pension ageOpens in a new window

You usually cannot get a refund of your pension contributions, including voluntary contributions, unless you leave your:

• defined contribution scheme within 30 days of joining
• defined benefit scheme within two years of joining.

For more information, see our guide How to get your pension contributions refunded.

There are two ways to contribute more into your private pension.

If you’re looking to top up your State Pension, see our guide Increase your State Pension with voluntary National Insurance contributions.

If you have a defined contribution pension, you can usually change how much extra you pay in by contacting your: 

• employer – if they set up the scheme

• pension provider – if you set up your own pension.

For help working out how much extra to pay in, you can use our:

• Pension calculator to see the difference extra contributions might make 

• Budget planner to help work out what you can afford.

If you have a defined benefit pension, check if your scheme allows additional voluntary contributions.

If it does, you can usually ask your employer to change how much extra is taken from your wages each month – there’s often set additional amounts you need to pay.

If your existing scheme does not offer an AVC scheme, or you’d like to choose a different provider, you can start contributing to a new pension.

Just be aware that all pensions you can set up yourself are defined contribution, so the amount the scheme will pay largely depends on how much is paid in and how well the investments perform – there are no guarantees.

You can usually choose how much you want to pay in and how often, unless the provider has rules on minimum payments. You’ll arrange how the payments are made with the provider, as they won’t be taken from your wages.

For more help, see our guide How to start your own pension.

If you set up a separate pension alongside your workplace scheme a while ago, this might have been called a free standing additional voluntary contribution (FSAVC) pension.

As pension scheme charges have been reducing over time, it’s a good idea to see if a transfer to a new scheme could save you money. 

For more information, see our guide Pension scheme fees and charges explained.

If you have a UK-based defined contribution pension, we offer free Pension Wise appointments to help you understand the options for taking your money.

You can have an appointment if you are: 

• 50 or over 
• under 50 and: 
  • retiring early due to poor health or 
  • have inherited a pension.

You can have an online appointment at any time or book a date and time with one of our pension specialists.

If you have any questions about your pension, our pension specialists can help – it doesn’t matter how old you are.