Aegon AVC - what to do??

paparossco

Statement arrived today so I'm looking for some views please. I took out the plan in 1992 at £25 per month, and has stayed the same since then! In my defence I am in the NHS 1995 scheme and I will retire in 2017 at 60 with 40/80ths having bought back a year and a half service and have been topping up my pension this way since I was 35.

The AVC came about when I met the union 'financial advisor'. I seem to recall at the time it was flavour of the month to push private over public pensions. Luckily I took this AVC as an extra rather than a complete move and was happy for it to have a punt on a 'with profits' fund.

Paid in since 1992: £9.2k
Value in 2014 : £10.4k
At 60 lump sum £2.9k with yearly pension of £427

Plan fund High Equity WP, transfer value £14.4k.
They say they will reduce this transfer value by market value reduction if I withdraw my money other than at pension date or death.

Should I 'do' anything with the AVC or let it run until 60 and put it towards a holiday when it pays out?

Thanks

kitkatt1982

Seek some advice from an independent financial advisor. We have an Aegon pension, our funds did very well in 2010 but dipped the last two years, advised they are on the up this year. We have lost considerable funds last two tax years but switched to different funds mid tax year and regained losses plus.

paparossco

Will do thanks. I had wondered if it was worth seeing an IFA so I will go with this.

sandsy

You've invested £25pm for roughly 22 years and the underlying value is £14.4k. That's a return of about 6.5% per annum to date.


Personally, given your other arrangements which form the bulk of your retirement planning, I'd leave it and take a chance on it than pay an adviser several hundreds of pounds. Happy holiday planning!