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Should I pay into redundancy into AVCs?
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
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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
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Yes that's right, first £30k tax free.0
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