Group AVC Pension

The Skandia Group AVC Pension is a simple, flexible, unit-linked plan, with tax advantages, that trustees of occupational schemes can set up to help employees make extra personal contributions for their retirement.

Who can take out a Group AVC Pension?

The pension is set up by the trustees of your employer's main scheme.

To be eligible you must be a member of your employer’s occupational pension scheme.

Minimum scheme criteria will need to be met (see Minimum contributions below).

Minimum and maximum ages

18-73.

Minimum contributions

Average member contribution £200 monthly.
Total scheme contribution £15,000 monthly.

Term

Minimum term 2 years.

Benefits

Tax efficiency
You receive income tax relief on contributions. Funds are free from capital gains tax and generally free from income tax. With less tax paid, more goes towards the growth of your fund.

Flexibility
Regular contributions can be stopped, reduced or increased without incurring extra costs or penalties. Previous contract ranges may incur penalties.

If your employment status changes you can easily switch to another Skandia pension product.

Risks

The value of your pension when you retire cannot be guaranteed as it will depend on investment performance and interest rates when you start taking your pension.

The value of fund units can go down as well as up and investment growth cannot be guaranteed.

Tax rules can change at any time, which may affect your pension.

The value of your pension may be less than you expected if you stop or reduce contributions, or if you take your pension earlier than you had planned.

If the Group AVC Pension starts with a single contribution and the Trustees cancel the scheme within 30 days, the amount returned maybe less than was paid in.

This web page is only intended as a general introduction to the Skandia Group AVC Pension. Full details of the product can be found in the Skandia Group AVC Pension product brochure, available from your financial adviser.

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Extranets

Information on this website is not intended for Hong Kong residents. Information on this website about Skandia Group Companies is intended for UK residents only, unless it relates to Royal Skandia, Skandia Life Norge or Suomen Sivuliike. Skandia Group companies do not offer investment advice and no information on this website should be construed as such.

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