ReAssure AVC

parcival

My wife has a policy with ReAssure that relates to AVC's from a former employer and as such she has not and will not be contributing to it again.

The current fund value is just over £13k which is invested in the National Mutual With Profit Fund. It states a transfer value of £28.3k.

The statement indicates that a final bonus may be payable on maturity which is in 2 years time.

It also states that an MVR may be levied - but not on maturity.

The statement estimates a pension of £828 per annum in 2 years time. The policy has no inbuilt guarantees.

Advice would be appreciated on whether to leave this as it is for now or would it better to transfer it to something else. In two years time the aim would be to maximise the annual pension rather than to be thinking of any lump sums.

mania112

2% bonus rate, isn't great.

It's almost certainly going to require a transfer to Income Drawdown or an Annuity in 2 years, which will cost money, so perhaps consider a transfer now to a contract which allows for one of those options in the future and see if you can build the fund a bit until then.