If you paid Additional Voluntary Contributions (AVCs), these are held in a separate account and can be used to provide additional benefits at retirement.

You’ll receive a Statement each year showing you the current value of your AVCs. You can also use your AVCs to reduce the amount of pension you need to exchange to fund a tax-free cash lump sum if you choose to receive one. Any pension quotations you receive will include information about your AVCs and the options available to you.

Your AVCs — have you reviewed where they’re invested?

Your AVCs are more than likely to be invested with Legal and General (L&G) and it’s important that you regularly review investment decisions, to make sure they remain suitable for your needs.

If you have not made an investment choice in the past, your AVCs will be invested in the L&G Cash Fund. This may be suitable for members who are close to retirement, as the value of the Cash Fund is likely to be more stable than other types of investment. However, if you’re several years away from retirement, the Cash Fund may not be suitable for you.

You’re able to choose your preferred investments using the individual funds or the ‘lifestyle’ strategies available with L&G and can switch between funds. L&G also offer ethical investing funds. If you’re invested in a Lifestyle Profile, your investments automatically switch over time, as they’re designed to reduce your level of investment risk as you approach retirement. There are three different profiles designed for members who’d like to:

i.          take all their AVCs as a cash lump sum;

ii.          purchase an annuity;

iii.          disinvest their AVCs as and when they need to during retirement (known as “drawdown”); or

iv.          transfer out of their AVC pot.

You can find out more about your AVC investment options through your L&G online account: landg.com/mya, or call L&G on 0345 070 8686.