small AVC and flexible drawdown

sleepless_saver

I have an AVC, value around £6k. I'll have a public sector pension which is above the guaranteed minimum income for flexible drawdown.

When the time comes, I'd prefer to take the full value of the AVC in cash - but not if it costs a significant proportion of its value to get flexible drawdown set up.

Can any of you helpful people tell me (1) is flexible drawdown possible for such a small sum and (2) how much would it be likely to cost? (3) can I do it myself or do I need an IFA?

jamesd

Is it really an AVC part of a workplace pension or is it a personal pension? If it's an AVC you'll need to check with the scheme administrators to see what your options are. You may be able to take all of the AVC as a lump sum and use the main pot for income.

If it's a personal pension it's possible and you can do it yourself for no more than £320 plus VAT from at least one provider, Hargreaves Lansdown. Others may be cheaper. 25% is taken as the tax free lump sum and the rest is added to your normal taxable income for the year(s) in which you take the income.

sleepless_saver

That's very useful, thanks. It is a work related AVC so I will contact the scheme administrators and see what they say.