cash in AVC?

ems_mum

I have Scottish Widows AVC via Civil Service Pension with a value if £13k. Following Budget 2014 can I draw down and invest it elsewhere? My last statement indicated a pittance at age 60! Us the money better under the matress?

swanny65

I have exactly the same question. My CSAVC is with Standard Life and currently valued at around £25k. My understanding is the CSAVC is paid when I retire and take my Civil Service pension.

My Department has had various voluntary exit schemes over the past year and several colleagues have retired or are retiring in a couple of months. I expect there will be future schemes. I am approaching 50, with 30 years service, and would retire if the opportunity arose, to protect the value of my pension (pay not likely to increase while pension increases in line with inflation), and get other employment.

I assume as the CSAVC is a DC scheme i would be able to draw down on its value to increase my income, for example, if needed, until i get paid my retirement pension, or pay off my mortgage if the Civil Service lump sum isn't quite enough.

swanny65

ems_mum wrote: »

I have Scottish Widows AVC via Civil Service Pension with a value if £13k. Following Budget 2014 can I draw down and invest it elsewhere? My last statement indicated a pittance at age 60! Us the money better under the matress?

Hi

Hoping for a similar answer.....

A bit off the topic but why would you want to leave and invest elsewhere. The charges on my Standard Life contributions are virtually zero. There is a small annual management fee.

I was mis-advised and originally had a FSAVC pension with far higher monthly and annual charges, and a limit investment choice.

Unless the fund choice offered by Scottish Widows is poor, the Standard Life one is pretty good, then I would seriously consider staying put.

dunstonh

ems_mum wrote: »

I have Scottish Widows AVC via Civil Service Pension with a value if £13k. Following Budget 2014 can I draw down and invest it elsewhere? My last statement indicated a pittance at age 60! Us the money better under the matress?

It is a pittance because that is what you paid into it. That fact you didn't pay much doesn't mean its better under the mattress.

bigadaj

dunstonh wrote: »

It is a pittance because that is what you paid into it. That fact you didn't pay much doesn't mean its better under the mattress.

Perfectly correct, presumably the OP has no idea of the open market value of the pension they will qualify for as it's likely to be well into six figures.

koops

i have a defined contribution avc policy also,with standard life....i have just visited their website to learn that the new budget rule applies from age 60,even though i can cash my pension at 55........does this mean i still have to purchase an annuity if i retire between 55 and 60

OldBeanz

I have a CS Scottish Widows AVC. I contacted MyCSP last year about it and they have a form that they will willingly send you to allow you to move the pension to wherever you want i.e. you can move it now if you wish, and post April 2015 and if you are over 55 you will be able to draw the money as you wish.