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Occupational Pension AVC

1356

Comments

  • sabelu
    sabelu Posts: 1,181 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Debt_Free_Chick wrote: »
    You can only take the cash when you take the pension - so not until you "retire". :o

    Can you not move that cash free sum to a SIPPS in the mean time?
    It pays to challenge
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    sabelu wrote: »
    Can you not move that cash free sum to a SIPPS in the mean time?

    Not on its own, no. You would have to transfer the whole pension entitlement at the same time.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • dunstonh
    dunstonh Posts: 120,150 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Scot Eq do not normally charge for fund switches (nor do most pension providers)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • DRS1
    DRS1 Posts: 1,669 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    sabelu wrote: »
    Scot Eq are advising me of alternative investments within their portfolio. Presume there will be a cost of transfer tho.

    That is good but if you don't think much of Scottish Equitable it might still be a good idea to ask the Trustees/Watsons if there is anywhere else you could move the money.

    I don't know how the scheme/investments are set up but you may find there are some cost involved with a switch - eg bid/offer spreads.

    Good luck.
  • sabelu
    sabelu Posts: 1,181 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Scottish Eq have confirmed although this is referred to as an AVC within the scheme it is clear in the transfer documentation that this is not an AVC. They have confirmed that I can transfer to other investments within their portfolio at no cost. Would anyone know of any sites that compare Scott Eq funds or indeed would anyone have any tips?
    It pays to challenge
  • sabelu
    sabelu Posts: 1,181 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Please help with this
    It pays to challenge
  • sabelu
    sabelu Posts: 1,181 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Finally I have had this transfer agreed by the Trustees and have received the valuation apparently the first time the Trustees have done/allowed this and the Administrators have taken a long time to get the valuation.

    The avc is worth £67k but have been advised of a GMP £18k so therefore £49k will be released am advised that the GMP is something to do with my state pension. Seems a bit steep tho, any observations? Therefore £49k will be transferred into a Hargreaves Lansdowne SIPPS acount, what reputation have they got? The reduction due to GMP doesnt mean I lose out I presume it will be used to enhance my state pension I believe, is this correct?
    It pays to challenge
  • dunstonh
    dunstonh Posts: 120,150 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The reduction due to GMP doesnt mean I lose out I presume it will be used to enhance my state pension I believe, is this correct?

    No that is wrong.

    You should stop this ASAP as you could be losing a fortune if you proceed with this transfer. GMP stands for guaranteed minimum pension. There is a good chance there is a GAR attached to this as well. If you transfer the policy or break up the policy you could lose a fortune potentially.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • sabelu
    sabelu Posts: 1,181 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    I want transfer the AVC to a SIPP is there anyway round this
    It pays to challenge
  • sabelu
    sabelu Posts: 1,181 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    dunstonh wrote: »
    No that is wrong.

    You should stop this ASAP as you could be losing a fortune if you proceed with this transfer. GMP stands for guaranteed minimum pension. There is a good chance there is a GAR attached to this as well. If you transfer the policy or break up the policy you could lose a fortune potentially.

    What is a GAR
    It pays to challenge
This discussion has been closed.
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