Having another pension pot on a DB scheme

jamesd

If you can't transfer just the AVCs then forget the AVCs unless your scheme is one that allows the AVCs to be used for the main pot lump sum. Some schemes will let you use AVC money instead of commuting some of the main pot and in these schemes building up enough AVC to do that tends to be a good idea.

Personal pension is probably best now since you can get those cheaper than Stakeholder these days. Stakeholder was good when initially introduced but the market has moved on since they first became available in 2001.

Something else old that you might be remembering was the restriction on having a personal pension as well as a workplace pension. That used to exist but since A-day in April 2006 it's gone. Today you can have an unlimited number of different pension pots as well as an unlimited number of work pots for different jobs.

kidmugsy

Re "trapped" AVCs, there's hope.

"those with a money purchase, cash balance or other arrangements which typically would have required the individual to purchase an annuity will be able to directly access their pension flexibly from April 2015, should they wish to do so. For the purposes of this document we refer to these types of arrangements as ‘defined contribution’ pensions. Those with Additional Voluntary Contributions (AVCs) will also be able to access these flexibly, subject to their pension scheme rules."

Mind the qualifying clause at the end there.


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/332714/pensions_response_online.pdf

crystal_pixie_2

kidmugsy wrote: »

Re "trapped" AVCs, there's hope.

"those with a money purchase, cash balance or other arrangements which typically would have required the individual to purchase an annuity will be able to directly access their pension flexibly from April 2015, should they wish to do so. For the purposes of this document we refer to these types of arrangements as ‘defined contribution’ pensions. Those with Additional Voluntary Contributions (AVCs) will also be able to access these flexibly, subject to their pension scheme rules."

Mind the qualifying clause at the end there.


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/332714/pensions_response_online.pdf

"Subject to their pension scheme rules" - that is the key statement here. The chances of my work's scheme wanting to change are pretty slim as this DB scheme is already closed to new employees and has been for the past 10 years.

I think that based on all the information I have my SERPs pot is going to be transfered to another personal pension that I can contribute to.

Looks like the best bet is to have a small AVC contribution so you can take advantage of it being taken at source but not to rely on this if you want to make further investment decisions.

Seems that the best way is to leave the DB pot until retirement age and save elsewhere. It might even be time to invest in some bricks and mortar!