Another CETV Q; Help Me Thrash It Through...

jamesd

cloud_dog wrote: »

So, the AVC pot has over £16k in it now (not sure that is hugely relevant), but I am keen to prove my investigations and the corresponding confirmations are correct and I can undertake a partial transfer out without the DB transfer advice requirements coming in to play.

I have therefore initiated a partial transfer from my AVC pot in to my SIPP. Let the chips fall where they will.

You're 54 now and two years ago had 70k in ISAs. Time to run that ISA money through a pension to get the pension tax relief because the pension access age of 55 is nigh.

70k in ISA -> 87.5k in pension with basic rate relief -> 21.875k PCLS and 65.625k taxable of which 30k can be taken with 3 uses of small pot rule, 24k after basic rate tax. And 35.625 taxable that would trigger MPAA if touched, 28.5k after BR tax.

That's 70k tax free rapidly available to 45.875k plus MPAA affected 28.5k post-BR. 70k in, 74.375k out. SS gain on top nd you'll probably get a lot of the taxable money out free of tax.

OH a couple of years younger may be able to recycle your PCLS money.

Don't know whether there's any change in your life expectancy thoughts that may make retiring very early look good - an actuarial reduction can be a great deal with very reduced life expectancy.

cloud_dog

Yes, although this is where my OCD probably comes in to play. The ISA money is compartmentalised as the repayment vehicle for the mortgage.

I know I could look at the options you mention but I'd have to get past my mental pots association.

Unfortunately taking the DB scheme early isn't an option, my company doesn't offer that. The only time I have seen that authorised was in conjunction with redundancy for a 61 year old employee.

For info...I'm currently contributing just shy of £10k pa into the AVC. This will shortly be increasing to £12.5k pa (all figures gross). And yes, I appreciate I may well need to contribute more or extend the retirement date to achieve my goal.

cloud_dog

Update
So, my (initial) partial transfer out from my company's DB AVC scheme in to my SIPP has completed successfully. :T

I'm going to have to monitor the AVC account to see if ongoing contributions start appearing in the AVC account or whether I need to re-instruct the administrators / anyone to continue with contributions in to the AVC account. The monies are still being deducted from my salary but that is no guarantee.

cloud_dog

Just for reference.... I had to set up a new AVC account so as to continue with company deducted additional contribution payments.