Can I withdraw the money from my AVC?

BML

The AVC is worth £3,600.00

Prudential said I can not withdraw the money and mentioned the £30,000 rule which I still don't know how to calculate. I hoped I understood them correctly but I am extremely hard of hearing and I could not get Prudential to reply by E-Mail.


I was seriously considering looking for a Financial Advisor to deal with this but I known none.

ScottyLP

Could you provide either a lump sum figure which you got when you took out your previous pension, or the annual amount you roughly get paid?

Also, xylophone a bit of digging around and the 75 age limit was removed in 2011. That'll teach me to read up properly

dunstonh

To calculate if you can use triviality, you multiple the occupational pension annual figure by 20 times. If that comes to greater than 30k then triviality is not an option.

One option is to put it into drawdown and take the rest next April when rules change. However, you cant do that with Pru. you would need to transfer.

BML

I have already mentioned that I am extremely hard of hearing and one of the problems that often comes with that is that one gets very fed up with asking people to repeat what they just said. As a result people with a hearing problem often let things go and later on attempt to retrieve the situation by asking someone to repeat what was said. In my case I just mentioned to my wife that I did not know what the calculation was for the £30,000.000 rule. She replied that she told me that earlier today and the answer is a multiplication of the annual salary by 25. In my case the answer is £135,000.00 so I'm stuffed there. If the calculator is 20 then the answer is £108,000.00.
Why can't I put it into drawdown with Prudential and would it cost me if I asked them to transfer the AVC?

dunstonh

25x is if the pension was pre 2006. 20x if post 2006. Looking at your age, it would seem 25x is the more likely figure. However, in both cases, you are way over the triviality limit.

Why can't I put it into drawdown with Prudential and would it cost me if I asked them to transfer the AVC?

Because you would need a contract that offers drawdown. The AVC will not. You need to buy a pension that offers drawdown. If its an in-house AVC, then you may find an adviser is required to transfer it. If its personal pension that used to be an FSAVC then you wont (FSAVCs were abolished in 2006 and became personal pensions. So, the only AVCs now are in-house ones).

xylophone

But couldn't he just take it as a "stranded pot"?

BML

So, we or rather you have established that my AVC will not allow drawdown and that I need to buy a pension that offers drawdown.


You then state, "If its an in-house AVC, then you may find an adviser is required to transfer it. If its personal pension that used to be an FSAVC then you wont and as (FSAVCs were abolished in 2006 and became personal pensions the only AVCs now are in-house ones)."


I'm not sure about the term, "In house AVC" because the only thing that I remember about starting the Scottish Amicable AVC was that the company studiously avoided any contact with it and offering any advice on the purchase of it.


I have to be up early to train for my next marathon so one last question. What would it cost for a Financial Advisor to deal with this?

xylophone

But can you take it as a "stranded pot" (small individual pot)?

http://www.argentsaccountants.co.uk/sites/10374/files/budget_summary_march_2014.pdf

"Small pots and pension commutation
From 27 March 2014, the size of small individual pension pots that
can be taken as a lump sum regardless of total pension wealth will
increase from £2,000 to £10,000. From the same date, the number
of small pots that can be taken as lump sums will increase from
two to three. Separately, from 27 March 2014, the amount of total
pension wealth that may be taken as a trivial commutation lump
sum will be increased from £18,000 to £30,000."

xylophone

I'm not sure about the term, "In house AVC" because the only thing that I remember about starting the Scottish Amicable AVC was that the company studiously avoided any contact with it and offering any advice on the purchase of it.

http://www.pensionsadvisoryservice.org.uk/different-types-of-uk-registered-pension-schemes-and-related-benefits/workplace-pension-schemes/avc-and-fsavc

BML

xylophone pointed out the following.
Small pots and pension commutation.
From 27 March 2014, the size of small individual pension pots that can be taken as a lump sum regardless of total pension wealth will increase from £2,000 to £10,000. From the same date, the number of small pots that can be taken as lump sums will increase from two to three. Separately, from 27 March 2014, the amount of total pension wealth that may be taken as a trivial commutation lump sum will be increased from £18,000 to £30,000.


Regrettably, both of my small pots exceed the above amount and I am above the £30,000.00.


Thank you all for your help but it looks as though you have taken this as far as it can be taken and I'm probably best leaving it until next year.