We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Should I pay into redundancy into AVCs?
Options
ler01kjh
Posts: 164 Forumite
Hi, I will shortly be made redundant and the total settlement will be worth £80k. Up until about 6 months ago, I have paid 10% of my salary into my pension since I joined my company seven years ago. I stopped it so I could accrue some additional savings while I am unemployed.
The settlement is much more than I expected, so my question is whether it would be worthwhile to request some of it to be paid into my AVCs. I am only in my 30s so it will be locked up for a long time, but it is also a final salary scheme and so I can use the AVCs for a tax-free lump sum on retirement or to buy additional pension or both.
Any advice welcome.
The settlement is much more than I expected, so my question is whether it would be worthwhile to request some of it to be paid into my AVCs. I am only in my 30s so it will be locked up for a long time, but it is also a final salary scheme and so I can use the AVCs for a tax-free lump sum on retirement or to buy additional pension or both.
Any advice welcome.
0
Comments
-
Is it the usual deal where the first £30k is tax free and the rest is exposed to income tax?Free the dunston one next time too.0
-
Yes that's right, first £30k tax free.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards