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AVC - advice please
indsty
Posts: 372 Forumite
I am taking my fairly small NHS pension (+ state pension) shortly. I have a small pot of AVC - approx £2500, which I started whilst in the NHS prior to my circumstances changing and has sat untouched for about 8 years. I am clueless about such things and will be phoning them next week but wonder if you can tell me my options. Can I take such a small amount as a lump sum? Or what? Many thanks for your help, I have learnt so much from everyone's experiences on this forum.
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Comments
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No you can't.
You can take 25% tax-free and the rest as an annuity. Or leave it to grow until age 75 or even add to it.
jem, doesn't that depend on whether the NHS rules allow all of an AVC to be commuted ? OP did say started "whilst in the NHS".
Even if they only allow 25% of the AVC as cash, is there an option to buy scheme pension with the residual fund ?
I don't know as I don't know the NHS rules, just a thought.It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.
Johnny Was. Once.
Why did he think "systolic" ?0 -
jem, doesn't that depend on whether the NHS rules allow all of an AVC to be commuted ? OP did say started "whilst in the NHS".
Even if they only allow 25% of the AVC as cash, is there an option to buy scheme pension with the residual fund ?
As far as I'm aware the NHS scheme is exactly like the Teachers' Scheme ( of which I am a member) and only allows the 25% tax-free option. It's really just treated as a personal pension.
The following might help.
http://www.pru.co.uk/pdf/kf/AVCK0433.pdf0 -
Thanks for the info, and the link - that was all helpful.:)0
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