Buying extra pension vs AVC

robaber

Hello 
I am part of the Local Government Pension Scheme (LGPS). 
I have been making Additional Voluntary Contributions (AVC) for around a year. These are deducted from my salary and managed through Prudential. 
I am considering increasing my AV contributions, but wondered whether I should buy extra pension instead. These payments would also come out of my salary monthly. 
When I retire, I plan to use my pension and AVC to buy an annuity.
Does anyone know if there are any pros or cons between buying extra pension compared with AVC? 
Thank you for your help!

Silvertabby

Buying additional pension is good value if you intend to work (or defer payment) until NRA/ State pension age.  Not so much if you are looking to retire before 60, due to the early payment reductions.

I assume you mean that your current plan is to use your AVC fund to maximise your LGPS benefits?  The LGPS annuity factors are almost certainly better than anything available on the open market, but the factors are obviously age related - so the earlier you retire, the lower the annuity.

You may find that an AVC gives you more flexibilty, especially if you later decide that you want some/more tax free cash (get your sums right and all of your AVC fund could be tax relief in/tax free out) but it really depends on when you want to retire.

Durban

Also , the AVC can be taken as tax free lump sum in total.
If you purchase more pension  -when that is paid - it will be taxed if your total pensions are over the personal tax allowance.

I think that it would be quite good to have both.
I bought extra years under the old scheme and also pay into the AVC's.

I think at some stage , I would quite like to purchase extra pension as well 

robaber

Silvertabby said:

Buying additional pension is good value if you intend to work (or defer payment) until NRA/ State pension age.  Not so much if you are looking to retire before 60, due to the early payment reductions.

I assume you mean that your current plan is to use your AVC fund to maximise your LGPS benefits?  The LGPS annuity factors are almost certainly better than anything available on the open market, but the factors are obviously age related - so the earlier you retire, the lower the annuity.

You may find that an AVC gives you more flexibilty, especially if you later decide that you want some/more tax free cash (get your sums right and all of your AVC fund could be tax relief in/tax free out) but it really depends on when you want to retire.

Thank you very much for your advice. 
I plan to retire at my NRA. 
Yes, you are right. I meant that I plan to use my AVC fund to maximise my LGPS benefits. 
What are the sums for tax relief in and tax free out?
I think the idea of having both seems fair. Perhaps I could split my payments 50% extra pension and 50% AVC.