Best Way To Make AVC's

ChloeRadshaw

I am thinking of making contributions to my pension each month.

I understand you can do this in two ways:
1) AVC from salary - Tax not deducted
2) From salary and claim the difference.

There is no incentive from my employer to do this.

Which one would you guys do and what should I be thinking about?

I can choose from all funds available from Skandia and think the AVC would be the easiest way to do this.

However I understand that Skandia itself take 1% to put onto the platform and a further 0.5% a year for running costs.

Given this I think it might actually be worthwhile thinking of another option.

Does anyone have any ideas please as I will likely be investing 15K a year in my pension a year?

dunstonh

I caught your other post on this one and answered some of the bits on there. But just to confirm again, the Skandia current contract has no initial charge and no additional charges on the amc. I think your in-house AVC is a legacy product using legacy charges.

ChloeRadshaw

dunstonh wrote: »

I caught your other post on this one and answered some of the bits on there. But just to confirm again, the Skandia current contract has no initial charge and no additional charges on the amc. I think your in-house AVC is a legacy product using legacy charges.

Thanks - Yes they do use an IFA which is not that useful

If you were in my shoes would you be contributing to your pension from your final salary and the reclaiming the tax from the revenue?

Debt_Free_Chick

ChloeRadshaw wrote: »

Thanks - Yes they do use an IFA which is not that useful

If you were in my shoes would you be contributing to your pension from your final salary and the reclaiming the tax from the revenue?

If the AVCs are being deducted from your salary, you'll get the tax relief in your net pay, immediately. No need to claim anything from HMRC.

ChloeRadshaw

Debt_Free_Chick wrote: »

If the AVCs are being deducted from your salary, you'll get the tax relief in your net pay, immediately. No need to claim anything from HMRC.

True - But at the cost of paying 1% initial fee and 0.5% annual charge :mad:

dunstonh

Buy a individual version that doesnt have that charge. If you are not seeking and getting advice then dont pay for it.

ChloeRadshaw

dunstonh wrote: »

Buy a individual version that doesnt have that charge. If you are not seeking and getting advice then dont pay for it.

Agreed - But does nt that mean that I need to ask for tax to be repaid from the revenue?

Debt_Free_Chick

ChloeRadshaw wrote: »

Agreed - But does nt that mean that I need to ask for tax to be repaid from the revenue?

Yes - but it's simple. And they generally adjust your tax code sso that you get 40% pretty much "immediately" - at least, once they've adjusted your code.