Saving half my salary!

atush

OP, first off when do you intend to take your CS pension. Ie how many years early/reduced? Does your AVC need to be linked to your DB pension (to provide a TF lump sum)? Or are you planning on taking it at 55?

If the AVC is being used as above, then you may want to consider a Sipp in future (ie for th next 7 years) and you may also want to max your S&S isas too. These 2 pots coud be used to retire on unti you take your DB pensions.

So all depends on when and how you want to (or are able to) take your CS pension.

Also, have you checked what your partner may get if you died in service or in retirement? Does the pension pay out if you arent married? Some do and some dont.

Bravepants

Well, I've been away for a week, so sorry for not replying to all of your excellent posts sooner.

RIT: Nice to hear from you! I had a look at your blog a week or so ago. Your points regarding costs, and inc. vs. acc. certainly have given me food for thought. Also I am aware of my weighting China and Biotech a bit high...I've recently reduced my monthly contribution to those to slowly adjust the weighting over time...chunks of those may end up in VLS60 in the near future. I have so far resisted the temptation to mess with my fund choice, preferring to leave well alone until I've had more experience. I would like to simplify my portfolio in the future and everyone seems to rate index trackers...and I guess I should be looking at cheap income providing index trackers. I tended to aim for acc. funds to build capital. The income funds are set to re-invest dividends at the moment...does this not have the same effect as if I had chosen the acc. version of the fund though?

atush: My AVC can be taken separately from my main pension at 55. My workplace has a deal with Scottish Widows to reduce costs of this. I am going to receive a new pension statement soon, so I can work out how much it would be worth if I take it early. I'm aiming for 55 for retirement, but realistically it may be closer to 60.

I shall review your posts again in the coming days.

Thanks again everyone...very useful!

Paul

Bravepants

atush wrote: »

OP, first off when do you intend to take your CS pension. Ie how many years early/reduced? Does your AVC need to be linked to your DB pension (to provide a TF lump sum)? Or are you planning on taking it at 55?

If the AVC is being used as above, then you may want to consider a Sipp in future (ie for th next 7 years) and you may also want to max your S&S isas too. These 2 pots coud be used to retire on unti you take your DB pensions.

So all depends on when and how you want to (or are able to) take your CS pension.

Also, have you checked what your partner may get if you died in service or in retirement? Does the pension pay out if you arent married? Some do and some dont.

Hello,

My AVC does not need to be linked. I have debated over the last few years whether to stop the AVC and transfer to a SIPP. I can do that. I also stopped it one year and paid Added Years as I thought it was better value, but then I swapped back again! Our pensions department cannot provide advice! If I bought the max of 6 years I could effectively get my full pension at 62 instead of 68 right? So I would get more when I took even earlier retirement. Decisions, decisions!

I have heard several comments about AVCs being obsolete. I could transfer into a SIPP with Fidelity and keep it simple with VLS60.

I have nominated my partner for my death benefits...we are effectively "common law" although that term is probably as obsolete as the term "AVC"!

If there's one thing I've always been a little nervous about, it's making the right/wrong decision with regard to all this. But at least I'm heading in the right direction. If my main aim is to save tax then an ISA and SIPP both with VLS60 would do the job, but the other funds add a little more diversity and risk which I'm happy to take at this stage. I do eventually want to shift over to income and bond funds though.

Regards,
Paul