AVC advice - please

Ethelred865

Please can someone advice me - I have contributed to 2 AVCs with Lincoln Insurance for over 10 years, one I contribute £81 a month, the other £26 a month. I am 45 years old & currently having a break from work after taking a redundancy package & looking at options to “tighten my belt”, so too extend my break. What options do I have with my AVCs – without impacting on their value ? Can I suspend or lower the payments for a period of time ? Also are AVCs a good investment ? Am I right to keep contributing for another 10 years ( I believe I can start to draw “a pension” from them at 55) or can my £107 a month be put to better use elsewhere. Any advice would be gratefully received.

jonathon_hart

Hi

We can't give you personal advice, you need to decide for yourself what is best for you or consult an IFA. As they are voluntary contributions you can stop them, however I would check with Lincoln to be sure there isn't any impact on e.g charges if you do this.

You should also be able to change them to different investment funds or transfer them to another pension plan (with either with Lincoln or elsewhere) but again you may want to check on what charges this would entail.

As to when you can take your pension. Currently the minimum age is 50, however this changes to 55 from 6 April 2010, so if you are currently 45 you may be below this cutoff if your 50th birthday is before that date

david78

Are these Free standing AVCs (FSAVCs) or AVCs linked to a company scheme?

Ethelred865

Hi Jonathon, thanks for taking time out & providing the info.

Hi Dave, both are Free Standing.