Are AVCs worth it late in working-life?

chucknorris

I'm 57 and not sure when I will retire, next year is a real possibility, although it is possible that I may work longer. For the last few years I have been investing up to the annual allowance in my pension, it is great value when you know you can take it out when you want, although in reality I won't be touching the tax free elements (ISA/SIPP) of my portfolio for decades.

jem16

smjxm09 wrote: »

I pumped so much money into my AVC's over the last 2 years that I got my take home pay just below the threshold for national insurance so I save an additional 12%.

Are you still getting credited with NI or not?

peadar

I spoke to the Pru today about making AVCs. The first £200 per month would receive higher rate tax-relief, anything additional would receive relief at the lower rate.

75% of the final lump sum would be taxed at whatever tax rate I’m on when it’s drawn (obviously lower, post-retirement), the other 25% will be tax-free.

The current annual management charge is 0.8%.

Seems I can vary or stop payments at any time...