Additional voluntary contributions (AVCs)

Thrive works in partnership with Smart Pension to provide your workplace pension.

Your pension, including any additional voluntary contributions (AVCs), is held and administered by Smart Pension. You can still view and manage your pension through the Thrive app.

Here’s what AVCs are, and what options you might have.

What is an AVC?

An additional voluntary contribution (AVC) is extra money you choose to pay into your pension, on top of your regular contributions.

People often use AVCs to build a bigger pension pot for retirement.

AVCs can sit alongside two types of pension:

• A defined benefit (DB) pension, where your retirement income is based on salary and length of service.
• A defined contribution (DC) pension, where your pension pot grows based on what’s paid in and how it’s invested.

How much can I pay into my pension?

The government sets a limit on how much you can pay into pensions each tax year.

This is called the Annual Allowance.

For the 2025/26 tax year, the limit is £60,000 across all pension schemes.

Some people may have a lower allowance. This can happen if:

• You have a high income.
• You have already started taking money from a pension.

If you pay more than your allowance, you may need to pay a tax charge.

How do I know if I have an AVC with Smart Pension?

If you’ve been paying additional voluntary contributions (AVCs) and these are transferred to Smart Pension by the trustees of your defined benefit (DB) pension scheme, your previous pension provider will contact you to let you know this is happening.

Once the transfer is complete, Smart Pension will record these AVC benefits on your pension account, which you can view through the Thrive app.

What options do I have if I have an AVC?

Your options will depend on your pension arrangement with Smart Pension. In most cases, you’ll have two options.

1. Move your AVC back to your defined benefit pension

At retirement, you may be able to transfer your AVC savings from Smart Pension back into your main defined benefit pension scheme.

This can help you maximise the tax-free cash you’re able to take when you start taking your defined benefit pension.

2. Take your AVC through a retirement option

You may also choose to:

• Take your retirement benefits directly from Smart Pension, or
• Transfer your pension savings to another provider before retirement.

If you take either of these options, you’ll usually need to sign an indemnity form. This confirms you understand you’re giving up the option to move your AVC back into your defined benefit pension.

Need help?

If you’re unsure what your options mean for you, it can help to talk it through. You can contact Thrive Customer Support here.

Through the Thrive app, you can book a session with a financial coach. They’ll help you understand how pensions work and what to look into next.