Can I contribute more to my workplace pension?
Absolutely! You can contribute up to 100% of your taxable earnings.
You can contribute much more than the standard 5% if you'd like to boost your retirement savings. Any contributions above the minimum 5% are called Additional Voluntary Contributions (AVCs), and they're one of the most tax-efficient ways to save for your future.
How AVCs work differently
While your standard pension contributions are calculated on "qualifying earnings" (between £120-£967 per week), AVCs are applied to your entire gross taxable salary. This means:
- No upper limit on the salary amount AVCs can be taken from
- Same tax relief as your standard contributions
- More flexibility to save larger amounts
- You're in complete control of how much extra you contribute
How much can you contribute?
The maximum you can contribute to all your pensions combined is £60,000 per year before facing tax charges. This includes:
- Your standard 5% contributions
- Nasa's 3% contributions
- Any AVCs you make
- Contributions to any other pensions you have
You can find out more about Annual Allowance here.
💡Important: Nasa doesn't match AVCs. Whilst your extra contributions benefit from the same tax relief, Nasa's contribution stays at 3% regardless of how much extra you contribute. Our employer contributions are based only on the standard auto-enrolment rates.
How to set up AVCs
Setting up AVCs is simple !
- Email our Payroll team: payroll@nasagroup.co.uk
- Tell us: How much extra you want to contribute (as a percentage or fixed amount)
- We'll set it up and changes will apply from your next payslip
Managing Your AVCs
You can change them Anytime
- Increase when you get a pay rise or bonus
- Decrease if you need more take-home pay temporarily
- Stop completely if circumstances change
- Restart whenever you're ready
They show on your payslip
- Standard contributions and AVCs are shown separately
- Income Tax relief is applied to both
- Easy to track how much you're saving
Need Help?
Contact our Payroll team at payroll@nasagroup.co.uk if you need assistance or want to receive pay projections before deciding on your contribution levels.
Remember: AVCs are flexible - you can start, stop, increase, or decrease them whenever your circumstances change. They're a powerful tool for taking control of your retirement planning while benefiting from excellent tax relief!