What is an FSAVC?
A Free Standing Additional Voluntary Contribution (FSAVC) is a scheme created by a private provider that enables an employee to ‘top up’ their retirement savings by contributing to a personal pension product alongside their main workplace pension scheme.
People who have taken out an FSAVC may have paid higher product costs and these costs may have negatively impacted their retirement fund. Some consumers may have also missed out on benefits commonly associated with in-house pensions. As a result, some consumers can be left with a pension pot worth far less than originally anticipated.
How do I know if I was mis-sold an FSAVC?
There are several signs that you may have been mis-sold an FSAVC. These can include:
- You weren’t told that you could make additional voluntary contributions to your existing occupational scheme
- You weren’t informed of the higher costs associated with your FSAVC
- You weren’t given information outlining how your FSAVC funds would be invested
- You weren’t warned that your FSAVC wouldn’t benefit from employer contributions
What should I do if I was mis-sold an FSAVC?
If you can identify with any of the statements above and you feel that you were mis-sold an FSAVC, please get in touch with the team at Pension Justice.
We know how devastating it can be to discover your pension savings aren’t worth as much as you’d hoped, which is why we’ll do everything within our power to fight for the compensation you deserve.
How we can help
We have a team of specialists with extensive legal experience and we’ll be with you every step of the way, from the moment you call us up until completion of your case.
We firmly believe that legal support shouldn’t be limited to those who can afford to pay high legal costs, which is why we offer a No Win No Fee service. This means you won’t pay a penny unless your case is successful. If you win your case, you’ll pay us a set fee which we will have outlined from the start.
To learn more about Pension Justice or to make a claim, please get in touch with our team.
*Fee payable if case is not pursued at the client’s request.
What is the difference between an FSAVC and an AVC scheme?
An Additional Voluntary Contribution (AVC) and a Free-Standing Additional Voluntary Contribution (FSAVC) are two types of pension schemes that individuals can use to boost their retirement savings.
AVC schemes are offered by employers as an extension of their defined benefit or defined contribution pension scheme, allowing employees to contribute extra funds towards their retirement.
On the other hand, FSAVC schemes are independent pension plans managed separately from an employer’s scheme, giving individuals more control and flexibility over their investment choices.
Is a FSAVC a good investment?
The answer to that question will largely depend on you. As with any investment, it’s important to take advice from a reputable independent financial adviser before you do anything. An IFA can do all the necessary research and recommend a plan from a tried and tested pension provider. In general, though, an FSAVC scheme can have the following potential benefits:
Greater control and flexibility: An FSAVC gives you more control over your pension contributions and investment choices. You can select from a wider range of investment options that suit your risk tolerance and investment goals.
Diversification: FSAVCs allow you to diversify your pension investments beyond your employer’s pension scheme. By accessing a broader range of investment options, you can spread your risk across various asset classes and potentially maximise your returns.
Additional retirement income: The extra funds accumulated through an FSAVC can provide an additional income stream during your retirement years, enhancing your financial security and lifestyle. Early retirement: The extra annual income from an FSAVC can assist you in taking an early pension if you so desire.