whats best : a lump sum avc or monthly payment? advice please

blackcat1962

Hello,
Some advice would be greatly apprieciated. I wish to make an avc payment into my pension. I would prefer to make a lump sum payment so the money works for me straight away. i understand i will need to claim back the tax myself for this. The other alternative is to have a monthy payment deducted from my wages and tax will automatically be deducted.

Are there any snags or advantages for paying in a lump sum avc ? and if i did so would it be best to pay before april or after? or would it be in my better interest to have payment s deducuted monthly from my wages?

Any views most welcome,
Regards,
Blackcat.

Loughton_Monkey

It's entirely up to you. You need to make sure that the total amount you pay in during any tax year does not breach the limits.

If you pay a lump sum, then your fund units will all be priced on the day you buy. If you drip feed over a long period, then you will buy units at a range of different prices. Nobody can pre-suppose which of the two would turn out to be best.

If you wish to attract tax relief in the tax year 2010/11, then you will be forced to do it before April 6th 2011, and so a monthly option is not really available.

If you are going to do it in a lump sum, then I suggest you do it quickly. March is usually a 'good' month for funds owing in part to people, like you perhaps, 'filling up' their pension and ISA limits.

blackcat1962

thank you loughton monkey i had better hurry up and write that cheque!!!!!!!!!!!!