AVC term ends- what to do now?
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weanie
Posts: 268 Forumite
Hi - I was looking for some advice regarding a letter received from AVIVA. I have a very small AVC pot which comes ot an end at my 60th birthday and thy have send me a current fund value of about £14000.
I intend taking out the maximium 25% as a lump sum and then the rest will have to go towards some rather meagre annuity. My daughter says I should requst retirement income quotes from other companies.
I am not convnced it is worth the hassle considering the 'pot' is so small. What do others think?
Many thanks in advance
I intend taking out the maximium 25% as a lump sum and then the rest will have to go towards some rather meagre annuity. My daughter says I should requst retirement income quotes from other companies.
I am not convnced it is worth the hassle considering the 'pot' is so small. What do others think?
Many thanks in advance
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Comments
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Listen to your daughter - what have you got to lose? Could be a small benefit but would be available for the rest of your days0
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Listen to your daughter.
Even if looking around only gave you an additional 5% annuity, this would have a similar impact to putting in an additional £525 into the pot. How long would you have to work to earn £525, and would this be worth the hassle of looking around (or asking an IFA to look around)?
5% is probably low-balled as well.0 -
Perelandra wrote: »Listen to your daughter.
Even if looking around only gave you an additional 5% annuity, this would have a similar impact to putting in an additional £525 into the pot. How long would you have to work to earn £525, and would this be worth the hassle of looking around (or asking an IFA to look around)?
5% is probably low-balled as well.
If you're going to get someone to look around on your behalf, ask him to get you a quote for a With Profits annuity too. At least that way you'll be able to make a choice between an annuity that's level and one that might (but only might) grow.Free the dunston one next time too.0 -
Many thanks for the advice. I have been on the internet and phone and contacted a company called Hargreaves Lansdown and also looked at the paperwork from Aviva more closely.
It seems that my horrible brush with cancer last year actually benefits this situation and I have a form to fill in regarding my state of health which may encourage a slight uplift in the pension.
I guess I will havve to fill in the Aviva medical form and also one from H.L. and see if my ill health can offer a very unexpected benefit!0 -
a company called Hargreaves Lansdown
Apart from their well-publicised computer problem over the Royal Mail flotation, I've always found them pretty good. In particular the people who discuss things over the phone are sentient beings who speak English that I can understand.Free the dunston one next time too.0 -
As you are looking at enhanced terms, get a local IFA to look at. Several times now I have come up against HL prices and returned better rates. That would be the same for most IFAs.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.0
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