Lump sum into company scheme

1971graeme

New to this so excuse my ignorance. I'm 43 with no dependants or mortgage. Have a good amount of savings with a Stocks and shares portfollio currently paying around £20k in income per year and pay full amount to isa every year. Currently have deferred pension with Bank of Scotland (small amount as worked for them for 5 years) letter says estimated GMP of £1331 p.a from 65th birthday and 10 year service army pension so at 60 will get lump sum of approx 10k and yearly pension of £3.2k. Have worked for Royal Mail for 8 years and pay into pension currently 6% and company pay rest up to 17.1% so around £54 per week. Have some money which is invested in a investment fund but feel my royal mail pension could do with a boost as want to retire at 60 so 17 years employment left. Can anyone advise on pros/cons on paying lump sum (waiting on response from royal mai but my calculations i can pay approx £23k in lump sum) into company pension as to leaving it in investment fund (sterling investment fund used for growth and no income)

Thanks

greenglide

But is the Royal Mail scheme not, still, a Defined Benefit scheme?

If it is, and it doesnt offer additional years or additional pension then that just leaves AVCs. AVCs may be good value if they can be used to fund a tax free lump sum which would otherwise only be available by exchanging part of your pension.

You may well be better off with a personal pension.