AVC Cash in

runtomrun

I have £14K in AVC's and am part of a LGPS.
I plan to continue in current LA employment although on reduced hours.
Because of the poor annuity rates was hoping to cash in AVC asap but advised that can only do this when full LGPS starts
Is this true??

PS I am 64 and can claim Government Pension on from my 65th birthday
Thanks

xylophone

PS I am 64 and can claim Government Pension on from my 65th birthday

Have you obtained a state pension statement?

https://www.gov.uk/check-state-pension

https://www.lgpsmember.org/more/AVCoptions.php

https://www.pru.co.uk/pdf/LAVK0846.pdf

Can you transfer the AVC to a SIPP and access flexibly?

Silvertabby

I have £14K in AVC's and am part of a LGPS.
I plan to continue in current LA employment although on reduced hours.
Because of the poor annuity rates was hoping to cash in AVC asap but advised that can only do this when full LGPS starts
Is this true??

Yes. When you come to take your benefits, you may find that you can either take all or some of your AVC as tax free cash or use it buy some form of LGPS pension. If you do that, you will find that the annuity etc rate offered by the LGPS will almost certainly be more than the open market,

You say that you are reducing your hours - have you looked at flexible retirement? That means that you can draw all of your LGPS benefits (including the AVC) whilst continuing to work. This would have to be approved by your employer, however, and could mean that your pension is reduced for early payment.

xylophone

Is there no possibility that he could just transfer the AVCs to another provider now (say a SIPP) and take flexibly?

He might then be able to use it to top up his reduced earnings until he chooses to take his LGPS pension?

If he intends to continue to work after SPA he might also choose to defer his state pension.

Silvertabby

Is there no possibility that he could just transfer the AVCs to another provider now (say a SIPP) and take flexibly?

Not possible up to the date I retired, but rules can and do change. It's worth OP asking his LGPS administrator / AVC provider if he can do that.

However, it doesn't sound like OP desperately needs this money now - he's just concerned about a poor return when he retires. If so, then I really can't see how he would benefit by transferring such a relatively small amount to a SIPP now.

chiefie

Flexible retirement a consideration ?