You can now save a little extra towards your future by making a one-off AVC payment into your Pension
Did you know you can now make one-off payments into your Pension throughout the year via www.telefonicarewards.com?
With the New Year upon us there’s never been a better time to start saving a little extra towards your future.
What is an Additional Voluntary Contribution (AVC)?
AVCs refer to contributions you can make in addition to your normal Pension contributions, effectively allowing you to top up your Pension pot for your retirement.
What are the benefits to me?
If you pay AVCs into your Pension Plan you benefit from:
- Tax relief on your contributions (within HMRC limits);
- Funds accumulate free of income tax and capital gains tax; and
- Upon retirement, 25% of your overall Telefónica benefits, including AVCs, may be taken as a tax-free lump sum (capped at 25% of the Lifetime Allowance).
How can I take advantage of this new option and make an AVC payment?
- Monetary amount must be in £1 denominations.
- As the AVC payment is a non-salary sacrifice you would not benefit from any National Insurance Contribution savings.
- An AVC payment doesn’t trigger any additional company contributions.
- Any AVC you request would be a one off payment and would cease for the following month.
- Reductions will commence at the next available pay date; and
- AVCs can be increased at any time.
The terms of the AVC facility are subject to the Telefónica Rules and HMRC regulations, which will prevail if there is any conflict with the information on this website.
If you are unsure about any aspect of investing AVCs into the Telefónica Pension Plan, you should seek independent financial advice.