Flexible paying in, flexible paying out. Lots of people’s circumstances change over time, so flexibility is important when it comes to saving for the future. AVCs are separate to your main scheme pension. They give you more flexibility both when you're saving and when you want to access your money. This is because you don’t have to take your AVC at the same time as your main scheme pension benefits. You can make regular or lump sum payments into your AVC direct from your pay, and you can change or stop your contributions at any time. Of course, any changes will affect how much money you eventually have and you'll still pay charges. Currently, when you reach 55 or possibly earlier, if you're in ill health, you'll have several options for what to do with the money in your AVC. You could do nothing and leave your savings in your AVC where they could grow more. Remember, the value can go down as well as up, and you may get back less than you put in. You could cash it in. You can take 25% tax free and the rest is taxable. You could also leave the money in your pot and take lump sums from it until your money runs out or you choose another option. Each time you take a lump sum, 25% of it is tax free and the rest is taxable. You can use some or all of your AVC to take flexible cash or income, also known as drawdown. You’ll need to transfer to a different plan to choose this option. Up to 25% of the money you transfer can be taken tax free at the start, and any other withdrawals you make are taxable. Or you could buy a guaranteed income for life which is taxable. This is known as an Annuity. Potentially, up to 25% of your pot can be taken tax free at the time you buy your annuity. If you want, you can choose a combination of these options that fit your needs. The tax you pay will depend on your individual circumstances and rules can also change. From age 50, visit moneyhelper.org.uk/pensionwise - a government service from MoneyHelper that offers free, impartial guidance to help you understand your retirement options. You can speak to them on 0800 280 8880, and book an appointment to meet with someone in person. You can also speak to a financial adviser.