£2880>£3600

RADDERS

I am not sure I understand this correctly or not so here goes.
Husband is retiring from work at end of August, age 56 and taking his DB pension. I am also finishing work at the same time but I cannot take my DB pension until I am 62 - 9 long years away.
If I open one of the Virgin or HL to put in the 2,880 each tax year could my money go up and down like other investments or is this just like investing in cash. Thanks for any assistance anyone can give me Radders

jamesd

With the HL one you can just leave it in cash. But do note that they have a prohibitive £295+VAT charge if you close the account within a year.

Virgin's has no charges but the money is invested in a FTSE UK stock market tracker fund so it can move up and down. That usually doesn't matter if you're putting it in and taking it out again quickly but it can during unusually turbulent times.

RADDERS

jamesd wrote: »

With the HL one you can just leave it in cash. But do note that they have a prohibitive £295+VAT charge if you close the account within a year.

Virgin's has no charges but the money is invested in a FTSE UK stock market tracker fund so it can move up and down. That usually doesn't matter if you're putting it in and taking it out again quickly but it can during unusually turbulent times.

Thanks jamesd as I cannot draw out for at least two years it seems that the HL will be then best for me, and then I can just continue funding it every year unless of course the rules change.

uk1

I put £1 in my wife's Virgin account to open it just before Brexit. It is now worth £1.03. I wish I'd put in the whole £2880 up front now.

Brexit was good for us. That 3p makes all the difference.


Jeff

parcival

This thread has been very helpful and as a result I have put £2880 into a Virgin Pension and will do so every year until I am drawing my company pensions.


I am currently 58 with no income apart from about £4000 of interest.


I have a small AVC (£15k) as part of a much larger deferred Occupational Pension. This main pension will be left untouched until I am 65.


I was thinking of transferring the AVC to my new Virgin SIPP. I would then take 25% lump sum and withdraw the rest in monthly instalments to use it all up by the time I am 65. This monthly income would be tax free using my personal allowance.


Is this correctly thought out or have I missed some pitfalls.


Thanks

xylophone

my new Virgin SIPP.

Does Virgin offer a SIPP?

greenglide

Will the pension scheme let you transfer the AVCs while leaving the DB pension in deferral? Most dont let you or at the least dont offer it as an option.

Does the DB pension include an "automatic" tax free lump sum? If not then does the scheme offer the facility to use the AVC to fund a tax free lump sum? This is a vastly better use of the AVC is you can manage this.

xylophone

I would then take 25% lump sum and withdraw the rest in monthly instalments

Does Virgin offer this facility?

Are you sure that you have chosen the pension scheme that best suits your requirements?

parcival

I am sure that my main scheme will let me transfer the AVC standalone and it does not have any automatic lump sum - I would not want that by age 65 anyway.


It was really an idea to maximise my personal tax allowance until I get the bulk of my pensions.


I will check to see if Virgin offers a 'drawdown' or if the pot would have to be moved elsewhere.

uk1

uk1 wrote: »

I put £1 in my wife's Virgin account to open it just before Brexit. It is now worth £1.03. I wish I'd put in the whole £2880 up front now.

Brexit was good for us. That 3p makes all the difference.


Jeff

My wife's £2880.13 has now moved down to £2869.72 post Theresa May. I do so hope thst I get the 25% tax posted soon.



Jeff