Avc

annebar

When I started teaching in 1999, aged 49, I took out an AVC to supplement my teacher's pension. Now that I have retired, aged 67, I would like to cash in my AVC. I know that I can claim 25% of the lump sum tax free, which is what I should like to do and to leave the remainder whilst I consider my options.
However, the Prudential (who the AVC is with) tell me that I can't do this and that I have to take out a new policy in order to claim the 25% and that the rest will have to be in a 'draw down' policy.
Is this entirely legal? Feels like sharp practice to me. Has anyone had a similar experience?

Dazed_and_confused

How much are you having to pay for this?

kidmugsy

I had a Pru AVC (though not with TPS). I took my DB pension leaving my Pru AVC alone, and then transferred the AVC to a SIPP from where I could draw out what I liked when I liked. It was dead easy and cost nothing in fees. The provider I used was Hargreaves Lansdown, whom I recommend; other firms that people around here like include Cavendish, A J Bell ... See:

http://monevator.com/compare-uk-cheapest-online-brokers/

xylophone

The AVC scheme does not support the way you want to draw your pension.

You need to transfer to a product that facilitates drawdown.

If you do not want to transfer into a Pru drawdown arrangement, you have the choice to transfer elsewhere.

http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp - might suit your purpose.