Help..

fineshine

I have a final salary scheme due to end in July this year when I am 65.. however, I am unsure as to what the difference is between a dc pension and a db pension..

I also have a small AVC that I have been told I would have to use to purchase an annuity.. would I be able to take this as cash when the new rules come in.

thanks for anybody who can help

jem16

fineshine wrote: »

I have a final salary scheme due to end in July this year when I am 65.. however, I am unsure as to what the difference is between a dc pension and a db pension..

A DB scheme is based on a set of benefits based on number of years service and salary. A final salary pension is a DB pension.

A DC pension is a pot of money that has been invested and returns will depend on stock market returns.

I also have a small AVC that I have been told I would have to use to purchase an annuity.. would I be able to take this as cash when the new rules come in.

thanks for anybody who can help

You probably will be able to but you may have to transfer the AVC to a provider that allows you to fully cash it in.

gadgetmind

Don't some DB schemes also allow the 25% PCLS to come from AVCs, which then means you get a better income from the main "pot"?

atush

Indeed some like LGPS do (or did but now new ones can't any longer).

but not all.

jem16

gadgetmind wrote: »

Don't some DB schemes also allow the 25% PCLS to come from AVCs, which then means you get a better income from the main "pot"?

Yes some indeed do.

However as the Op was told s/he had to purchase an annuity I assumed it wasn't one of them.

fineshine

Thank you for all the replies, most helpful