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Avc or personal pension

GreasyPalms · 2017-11-29 17:01:02

Hi I’m trying to decide whether I’m better off continuing to pay into a personal pension or making AVCs into my workplace scheme. I’m part of a DB scheme and can take my AVC fund tax free after I have taken my normal 3/80th lump sum (as long as it doesn’t exceed 25% of the combined funds). The trouble is the investment…

Comments

dunstonh Posts: 120,207 Forumite

3 December 2017 at 12:35PM

In the past (over a decade ago), most AVCs were cheap compared to retail options. Nowadays, most retail options are cheaper than the few AVCs that still exist. Firms are no longer required to offer an AVC.

So, unless there is something about the AVC that makes it worthwhile, then usually an individual retail option is better.

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

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