The Department for Education use Prudential as their provider for Teachers’ AVC, which means you can pay contributions direct from your gross pay, alongside your contributions to your teacher’s pension. Teachers’ AVCs are a money purchase arrangement, where the savings you make are invested with the aim of providing an increased return at retirement. Teachers’ AVCs also offer a tax efficient way to save for retirement in addition to your teacher’s pension. The tax you pay depends on your individual circumstances. HM Revenue & Customs tax rules may change in the future.

This could boost the amount of money you have available to you when you retire. This could mean you have more financial choice and control over how and when you retire. It’s currently possible to take your Teachers’ Pension Scheme benefits from the age of 55, but the earlier you take them, the more your benefits may be actuarially reduced. With Teachers’ AVCs, you could use the pot you’ve built up to help make up the difference. As with any investment, remember that the value of your Teachers’ AVC can go down as well as up and you may not get back the amount you put in.

Teachers’ AVCs are flexible and portable too. You have a range of funds to choose from, depending on how cautious or adventurous you are about investing. You should check your fund choices regularly as you may want to change your investment as your circumstances change.

You can increase, decrease or stop your contributions at any time. Please bear in mind that decreasing or stopping your contributions could impact your benefits at retirement and you’ll still pay fund charges.

To find out more about starting or increasing your Teachers’ AVC, please call the Prudential’s Retirement Specialist Team on  0800 151 3637. Lines are open Mon-Fri, 9am-6pm.  They can’t give you advice, but they can talk to you about your personal situation and help answer any questions you may have about Teachers’ AVCs. Alternatively, visit www.pru.co.uk/teachersavc (This link opens in a new window).