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Post A Day AVC - What to do now ?
elephant_guy
Posts: 72 Forumite
I am in a final salary scheme and due to retire in 9 years. For the last 13 years I have also been paying into an AVC. Initially payments were to Equitable Life :eek: until I escaped to Standard Life (with a hefty penalty) 
. My AVC fund value has improved considerably since leaving Equitable Life (Hardly Surprising !!) and is currently valued at £38,000.
My Pension Administrators have yet to make clear my position as to whether I will be able to remove my fund to invest elsewhere and also obtain a lump sum or whether my fund must be taken when my retirement date arrives.
My question is what could I be doing in the meantime ? I am a higher rate taxpayer and currently invest £200 per month in my AVC. What are my options post "A" Day. I am interested in something with an average to higher risk that I could conceivably transfer my AVC fund to (if this becomes possible). If the AVC fund must stay where it is I was considering stopping payments and putting my money in something new to get some of my tax back. I currently use my whole yearly ISA allowance already.
With the recent changes, could I open a new Personal Pension ?, Stakeholder Pension or are there other options ?
. My AVC fund value has improved considerably since leaving Equitable Life (Hardly Surprising !!) and is currently valued at £38,000.My Pension Administrators have yet to make clear my position as to whether I will be able to remove my fund to invest elsewhere and also obtain a lump sum or whether my fund must be taken when my retirement date arrives.
My question is what could I be doing in the meantime ? I am a higher rate taxpayer and currently invest £200 per month in my AVC. What are my options post "A" Day. I am interested in something with an average to higher risk that I could conceivably transfer my AVC fund to (if this becomes possible). If the AVC fund must stay where it is I was considering stopping payments and putting my money in something new to get some of my tax back. I currently use my whole yearly ISA allowance already.
With the recent changes, could I open a new Personal Pension ?, Stakeholder Pension or are there other options ?
0
Comments
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AVCs still have the link between occ scheme and this prevents them being useful for early retirement or phased retirement or being transferred without trustee approval (which is not usually given). FSAVCs are now obsolete as a new product.
Alternative options are stakeholder pension, personal pension, SIPPs and ISAs.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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