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Changes to Prudential AVC Exit Charges

24 January 2018


Exit Charges until 18 March 2017

Prudential applies a fee called an “exit charge” to any new members of NILGOSC’s AVC Scheme if they withdraw their contributions within three years of their initial contribution. A new member is anyone who was a new AVC member on or after 19 August 2012.

The exit charge does not apply on death, ill-health retirements or switches and will not apply to AVC members who joined and made their first AVC contribution before this date.

The charge applies as set out in the table below:

Year of Withdrawal

Exit Charge

(% of fund withdrawn)

During year 1
During year 2
During year 3
After 3 years


Prudential Exit Charges from 19 March 2017

In December 2016 the Department for Work and Pensions released new regulations regarding the level of exit charge allowable to members over the age of 55. The regulations stipulate that exit charges should change as follows:

  • New AVC members who join post 1 October 2017, and are over the age of 55 cannot have an exit charge applied to their fund. For existing members over the age of 55 the exit charge is capped at 1%.

Prudential applies an exit charge to members who take their benefits, or transfer out, within the first 3 years of making their first contribution to their AVC. From the 19th March 2017 this will change as follows:-

  • Members whose first contribution is received on, or after, the 19th March 2017 will no longer be subject to an exit charge regardless of age.
  • Members whose first contribution was received prior to the 19th March 2017 will have their exit charge capped at 1% for the first 3 years and 0% thereafter regardless of age. 

Further Information

Prudential has a dedicated website that provides a wealth of information on AVC arrangements, which is accessible at: Prudential can also be contacted by phone on 0800 151 3948.