Teacher AVC new drawdown rules

MaryBP

I am trying to access my Prudential AVC as a drawdown fund, but have been informed by them that I cannot do so without advice from a licensed FA practitioner - for which I would have to pay a substantial fee! The Prudential apparently are not yet licensed to give me this advice themselves! Has anyone out there managed to successfully circumnavigate this issue without having to forfeit part of their AVC fund in massive fees?

atush

You transfer the AVC out to somewhere else such as an HL sipp- basically somewhere that can do DD.

MaryBP

Thanks. Could you point me to the instructions for doing this since the Prudential have been less than helpful?

kidmugsy

MaryBP wrote: »

Thanks. Could you point me to the instructions for doing this since the Prudential have been less than helpful?

Phone again; it seems to be a lottery whether you get someone (i) who tells you transferring your avc is forbidden, or (ii) sends you the transfer forms required.

Keep phoning until you get a (ii). Alternatively, put it in the hands of HL and see if they can carry it off.

jem16

MaryBP wrote: »

I am trying to access my Prudential AVC as a drawdown fund, but have been informed by them that I cannot do so without advice from a licensed FA practitioner - for which I would have to pay a substantial fee!

Can you just clarify - are you trying to simply cash in your whole AVC pot or are you wishing to draw it down a bit at a time over a period of time.

How much is in the AVC pot?

Have you read this leaflet?

http://www.pru.co.uk/pdf/ANNB11212.pdf

System

MaryBP, thank-you for starting this thread; like you, I contacted the Pru' regarding my avcs, having deferred a decision about what to do with the funds on retirement until the dust had settled after 'new' government proposals for drawdown (my fund is an in between amount of 57k).

I used to be able to see my details online, but when I tried to log in the system firstly rejected my password, then stated that my e-mail address was not recognised as connected to any 'account'. I telephoned and the operator was decidedly unhelpful. I was told there is no system for teachers to be able to see their details online at present because it has yet to be set up (!). I was not given any information about when such access would be available and was told 'if you want to know something about your fund ask us', the implication being that I had to ask the 'right' questions to get any further info other than the current value. I have decided for now to sit tight and allow the funds to increase further. The advice to transfer to HL (or similar) at some future point seems attractive. Good luck.

Pat15

I retired from teaching two years ago and I'm in the middle of trying to cash in my AVCs with Friends Life. I have rung them 6 times since April 7th and originally was told that it would take 3-5 working days. Finally I received the paperwork I'd been waiting for last Friday, 22nd May. The only way of getting them was to transfer them to another recognised pension scheme. Today I've received more information from them about the risks of cashing them in. We're talking about a relatively small amount of £8000. I really need the cash due to family circumstances, but it looks like that I'm going to have to transfer them somewhere else where I'd be able to get the money I need.

tottytimms

I was wondering how you got on. I am looking at cashing in an AVC with Friends Life......I retire in June this year and have a separate pension so would rather have the cash than the small annual pension.:money::money::money:

tigerspill

Can I ask a slightly related question.
Can contributions to the TPS Prudential scheme be done at source and get the National Insurance benefits as well as Tax benefits?

If not, would a SIPP not be better if the only advantage of the AVC is tax?

Thanks