AVC v other funds

Fife59

Hello
I am with the NHS superannuation and looking to add some extra pennies to a pension .
I have started a vanguard SIPP,  but SPPA also signpost towards AVC with standard life /prudential
So today if anyone could give me some extra information on the below 

just not sure I need anything else but my vanguard for the amount of approx £200 I am putting in a month and only ten years from taking the drawdown

keep  vanguard SIPP and claim tax relief for the extra 20% 
open a prudential cautious fund - and put the money in myself - claim extra tax relief - not sure what this is as its only been mentioned to me today by someone whos is pleased with it as their private pension
 I could go with AVC - Prudential Dynamic Growth IV Lifestyle targeting drawdown  - come of my wages

ermine

AVCs with FS pensions have advantages as they can sometimes be combined with the value of the main pension when it comes to taking a 25% tax-free pension-commencement lump sum. That lets you take the entire AVC savings tax free (up to a certain amount) and will beat using a SIPP in many cases.

Inform yourself about the AVC options open to you in conjunction with the NHS pension. Particularly if you can use salary sacrifice to save into it, which may save you the NI you pay. You definitely want to know that this is not advantageous to you before going any further down the SIPP route.

Advantages of the SIPP would be if you want to retire earlier that the NHS pension NRA, because you could flatten the SIPP before drawing your main pension.

OldBeanz

Fife59 said:

Hello
I am with the NHS superannuation and looking to add some extra pennies to a pension .
I have started a vanguard SIPP,  but SPPA also signpost towards AVC with standard life /prudential
So today if anyone could give me some extra information on the below 

just not sure I need anything else but my vanguard for the amount of approx £200 I am putting in a month and only ten years from taking the drawdown

keep  vanguard SIPP and claim tax relief for the extra 20% 
open a prudential cautious fund - and put the money in myself - claim extra tax relief - not sure what this is as its only been mentioned to me today by someone whos is pleased with it as their private pension
 I could go with AVC - Prudential Dynamic Growth IV Lifestyle targeting drawdown  - come of my wages

There are no inherent benefits to the NHS AVC (lower NI or combining with main pension for larger tax free lump sum). The only benefit is that if you are a higher rate tax payer you do not have to reclaim the tax as that is aligned through your pay.
 You can buy additional pension from the NHS which does not rely on the vagaries of the stock market which is most advantageous if you are drawing your NHS pension at your normal pension age.
Are you trying to retire early (then SIPP or AVC might suit better) or do you want a bigger pension (NHS may be better option)?