Free standing AVC

woolywig

hi

I had for 15 years a private pension in addition i had avc's running as a top up, however 10 years ago I joined my company pension scheme and the private scheme and avc's stopped.

Since then my firm has chan ed the company pension scheme from final salary so at present two pensions frozen and one lot of AVC

My question is that I am now 55 and wandered what my options are

Are the avc contributions classed as the same as the pensions where they can not be surrenderd.

Can i take money from both my private and company pensions that are frozen

jem16

woolywig wrote: »

Are the avc contributions classed as the same as the pensions where they can not be surrenderd.

Yes exactly the same.

Can i take money from both my private and company pensions that are frozen

You can take a 25% lump sum from both. However if one/both are final salary pensions they may be actuarially reduced if it's before the normal retirement date.

roysterer

Question
If you have a final salary pension and (free standing) avcs is it possible to take the whole of the avc tax free, and a smaller part of the final salary providing the combined does not exceed 25%?
or does the 25% have to come out of each separate eliment? If required.
Because index linked increases come automatically with most final salary schemes, and at a ridiculous high cost with purchased annuities. If not then what is the chance of legislation changing to allow this to happen in the future?

It would help us to protect our (hard worked for) cash from those greedy (rip off) annuity providers.

jem16

roysterer wrote: »

Question
If you have a final salary pension and (free standing) avcs is it possible to take the whole of the avc tax free, and a smaller part of the final salary providing the combined does not exceed 25%?
or does the 25% have to come out of each separate eliment? If required.

Are you asking that question on behalf of the OP or yourself?

As to the answer, most scheme rules mean that you have to take 25% from the pension and AVC pot separately. The odd one, such as LGPS, allows you to take your 25% completely from the AVC pot.

dunstonh

If you have a final salary pension and (free standing) avcs is it possible to take the whole of the avc tax free, and a smaller part of the final salary providing the combined does not exceed 25%?

Theoretically, it is possible within the pension rules. However, I very much doubt the main scheme or the personal pension provider (FSAVCs are now personal pensions) would allow it. A small number of in-house AVCs allow it but most dont.

If not then what is the chance of legislation changing to allow this to happen in the future?

legislation already allows it.Its up to the schemes if they want to. Its economics that is preventing it.

It would help us to protect our (hard worked for) cash from those greedy (rip off) annuity providers.

annuity providers arent ripping you off or greedy. its a low profit area and there is no way you can really accuse them of ripping you off.