What is the best thing to do with my freestanding AVC"s

enchated1

dunstonh wrote: »

Are you saving money though? Someone posted in the investments forum last week that they were going DIY and had selected best invest and was using the pretty naff an expensive best invest portfolios. They had higher charges than most adviser arranged investments.

DIY works when you know what you are doing and do it well.



If you were buying an annuity and there was no guaranteed annuity rate, then you should take the 25%. If you are not buying an annuity and there is no immediate reason to take the lump sum then you shouldnt.



How about deferring the pension? Not saying that is best but it is an option that needs to be considered. Not all legacy pension schemes are bad value or poor quality.



That is only one part of the equation. The most important part is where you invest it. So, what did you have planned?

I want to get the maximum income for these AVC's that I can. I want to enjoy life a little. :beer:

enchated1

atush wrote: »

Probably, but at least he would ask about health.

Too many DIYers dont get enhanced annuities even when they qualify.

Basically, you missed my point. In that someone who knows nothing, needs to pay someone who does.

I'm 100% healthy woman

xylophone

You will have a TPS pension (at 60 presumably).

Is this a deferred pension or a pension to which you are currently contributing?

If deferred, are you currently working/paying/credited with NI?

Have you obtained a new state pension statement?

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

atush

As a single healthy person with no spouse or dependents, then using a sipp for DD over an annuity is perhaps a good idea. Planning to drawdown to zero.

But you need to commit to learning now about investing. Start with learning about the different types if risk incl inflation, and compounding returns

maximumgardener

To OP
yes ...there are lots of considerations for you !

its great you have your health. thats crucial.

a key point you probably need to figure out is
"how much monthly income do you require , now and in the foreseeable future (say next 15 years?) ?"

you could take your TP of 460 / month and take an added income from your AVC fund -
perhaps you have savings you can draw on or other earnings?

my sister in law lives (mortgage free) on 800 pounds per month. she is a retired midwife , age 63 and relies for now 100% on her nhs Pension.........so it can be done

you can get say 1000 per month and pay little or no tax,......so what exactly do you need?

your 28000 can be spun out depending on the rate you draw it down obviously!!

its good you are thinking this thru and you should not rush it.

maximumgardener

op....further option
you may wish to take your 7000 tax free cash from your 28000 and keep back say 6k for emergency cash.....invest 15000 in a S&S ISA? .......unless you are planning to keep contributing to a personal Pension but even then the ISA route is worth considering as you can easily be invested the same as you may be in pensions....via 2 -4 funds dependent on your risk etc etc
also ...you can add to ISA's year on year should circumstances allow this