Starting a new Job - Help on what to do with existing AVC?

beansy

Hi

I took early retirement from the NHS at the end of November last year and claimed my Superannuation but put my AVC on ice as I was looking for a p/t job.

In the meantime, I have been offered a p/t job working 3 days p.w. and I have the option of joining the company pension scheme and the employer will match my contribution to a maximum of 5%.

I contacted Equitable Life who my AVC is with for a current fund value and enquired if instead of me converting this into an Annuity would it be possible for me to transfer it into my new employers pension scheme. The answer was that subject to their scheme rules allowing transfers in that would be fine and there would be no charge for me to transfer it.

I don't know any details about my new providers scheme as it was just mentioned at interview but will find this out when I start my new job on 1 August but just wondering if anyone has any thoughts on this in the meantime please?

Thank you.

Drp8713

I would check with the NHS if you can buy added years / added pension with the AVC as this may be more favourable than an open market annuity option

Also depends on your new scheme if its DB then it may be worth a look

beansy

Drp8713 wrote: »

I would check with the NHS if you can buy added years / added pension with the AVC as this may be more favourable than an open market annuity option

Also depends on your new scheme if its DB then it may be worth a look

Hi thanks for your reply.

Unfortunately, I was not able to use my AVC alongside my NHS pension in any way. The only option I was given when I left in November 2012 was to purchase an annuity or freeze it and wait to see if it grew and purchase the annuity some time in the future.

I am now about to commence employment with a private company and am not sure who their pension is with but I have been advised by Equitable Life (although my AVC is with Clerical Medical if that makes sense) that if the new employer allows it, I can transfer my AVC into my new pension scheme at no cost. So I am wondering if that might be a better option for me if a transfer in is allowed?

Drp8713

If your new scheme is final salary then transferring it will give you security

How many years and days it buys you will depend on your age and the transfer factors usually.

If its a dc scheme you should seek financial advice re investments, charges etc.

Im not an expert on personal pensions but i assume the charges on your avc are quite low,

beansy

Thanks for your replies Drp8713

I will look into these questions as soon as I start work.