Avc

paul9676

Hi All,
A few years ago I paid into AVC with my current employer, I paid in roughly £2500 over a few years then stopped when I had my kids and money was a little tight.

I guess this won't pay out much when I retire so was thinking of taking it out and putting into an ISA or something similar.

My first question is

1. Can you take out the money put into the AVC?
2. If you can, what would be the best investment for it? [not a holiday as my wife suggested!]

Thanks.....

jamesd

You can take money out of an AVC when you reach the scheme retirement age. Possibly earlier if he scheme allows early retirement.

The best investment depends on when you might need the money, how much drop in capital value you can stomach in a bad year (45% or so for the main UK stock market) and assorted other factors. There's no one perfect answer. If you're not an experienced investor that narrows down the options a fair bit because it wouldn't be sensible to use a lot of them.

Why do you think that the money would grow more outside the pension than where it is now? What investments are you using within the AVC part of the pension pot? Any choices of others available?