Added voluntary contributions - AVC

Muz3TA

Hi,

a few year's back I decided to join an AVC scheme ran by the Prudential. As I was a little sceptical of their claims about the benefits I only paid in an extra £20 a month.

I recieved my first statement a year late & my suspisions where confirmed, I'd payed in more than I would get back. I immediately cancled the payments.

Even though I cancled my AVC they are still charging me an admin fee each year. I have tried on several occasions to get them to stop this & close the damn thing completely. My latest attempt was just a few months ago.

The Prudential told me I needed to do this through my pension compay. I contacted them, they said I had to do this thru the Prudential.

Neither will do anything about it. What can I do to get this account closed permanently & stop them charging me for a servise I don't want?

TIA,

Andy

Marcon

Muz3TA said:

Hi,

a few year's back I decided to join an AVC scheme ran by the Prudential. As I was a little sceptical of their claims about the benefits I only paid in an extra £20 a month.

I recieved my first statement a year late & my suspisions where confirmed, I'd payed in more than I would get back. I immediately cancled the payments.

Even though I cancled my AVC they are still charging me an admin fee each year. I have tried on several occasions to get them to stop this & close the damn thing completely. My latest attempt was just a few months ago.

The Prudential told me I needed to do this through my pension compay. I contacted them, they said I had to do this thru the Prudential.

Neither will do anything about it. What can I do to get this account closed permanently & stop them charging me for a servise I don't want?

So the markets fluctuated and your statement showed that? Funds go down as well as up - but the converse applies. What's the fund looking like now? There will be an annual management charge, and that will have been clearly shown on the documents at the time you signed up. 

If this really is an AVC, it is attached to an occupational pension scheme and you can't just close it; it will be there until you draw it (minimum age currently 55) or transfer all your benefits under your current scheme somewhere else - which might not be a great idea (or not even possible), since you could be in one of the really fantastic DB schemes such as the NHS, LGPS, TPS...

Laycity

Muz3TA said:

Hi,

a few year's back I decided to join an AVC scheme ran by the Prudential. As I was a little sceptical of their claims about the benefits I only paid in an extra £20 a month.

I recieved my first statement a year late & my suspisions where confirmed, I'd payed in more than I would get back. I immediately cancled the payments.

Even though I cancled my AVC they are still charging me an admin fee each year. I have tried on several occasions to get them to stop this & close the damn thing completely. My latest attempt was just a few months ago.

The Prudential told me I needed to do this through my pension compay. I contacted them, they said I had to do this thru the Prudential.

Neither will do anything about it. What can I do to get this account closed permanently & stop them charging me for a servise I don't want?

TIA,

Andy

You do know your contributions would have been net of tax and possibly NI? If you are still in the same local government employment you need to understand it’s a great asset to your retirement planning.

Marcon

Laycity said:

Muz3TA said:

Hi,

a few year's back I decided to join an AVC scheme ran by the Prudential. As I was a little sceptical of their claims about the benefits I only paid in an extra £20 a month.

I recieved my first statement a year late & my suspisions where confirmed, I'd payed in more than I would get back. I immediately cancled the payments.

Even though I cancled my AVC they are still charging me an admin fee each year. I have tried on several occasions to get them to stop this & close the damn thing completely. My latest attempt was just a few months ago.

The Prudential told me I needed to do this through my pension compay. I contacted them, they said I had to do this thru the Prudential.

Neither will do anything about it. What can I do to get this account closed permanently & stop them charging me for a servise I don't want?

TIA,

Andy

You do know your contributions would have been net of tax and possibly NI? If you are still in the same local government employment you need to understand it’s a great asset to your retirement planning.

May not be local government, but your point still holds good for other schemes.

dasherman

I've paid AVC's via my DB pension, Royal Mail, for many years and I have to say it's one of the best things I've ever done.

Muz3TA

I'm very happy for you. I didn't ask about your experience I was asking how do I get to stop admin fees.

OldBeanz

Muz3TA said:

I'm very happy for you. I didn't ask about your experience I was asking how do I get to stop admin fees.

If over 55 you should be able to cash the pension in. Otherwise you can transfer to another pension company who will still charge but perhaps less.

Muz3TA

I work in the civil service, My main pension is with the Great Manchester Pension Fund, the Prudential is the AVC, which I feel I was conned into. My tax & NI did not reduce at all, & as previously mentioned I paid more in than I would get back. Why the hell would I continue to do that?

How do they have any right to charge me for a service I no longer want? When I decide to leave my broadband supplier they don't continue to charge me for the service I have cancelled.

Neither my pension supplier or the Prudential will do anything to help, hey what a surprize.

Thanks for the help.

Andy.

tigerspill

AVCs were what allowed me to retire at 53.  
As an HRT payer and paying through sal sac, my cash nearly doubled immediately.  Put half in cash and the other half in a Global equity tracker.  Obviously that cash stood still but the equities did well.  
Very happy.

dunstonh

Muz3TA said:

I work in the civil service, My main pension is with the Great Manchester Pension Fund, the Prudential is the AVC, which I feel I was conned into. My tax & NI did not reduce at all, & as previously mentioned I paid more in than I would get back. Why the hell would I continue to do that?

How do they have any right to charge me for a service I no longer want? When I decide to leave my broadband supplier they don't continue to charge me for the service I have cancelled.

Neither my pension supplier or the Prudential will do anything to help, hey what a surprize.

Thanks for the help.

Andy.

You appear to have a misunderstanding of how these things work.
You will be charged in any investment as charges are quoted explicitly.     Unlike savings accounts where charges as implicit (hidden).
I don't believe Prudential have any pension on their books that has paid back less than paid in.  Certainly not the AVC linked to local authority.   So, the fact you think that is based on incorrect assumptions.   You are either misreading something or something is not right.

They cannot return the value to you if you are under age 55.   They will continue to make a charge for as long as they have it.
This is not comparable to a broadband supplier.   You cannot cancel the pension.   

AlanP_2

OP - Are you in the Civil Service or in Local Government as the Greater Manchester Scheme is LGPS not CS?

How old are you? As stated above you can't access a pension before 55, and accessing has potential consequences for future pension contributions so needs to be planned.

Also, as stated above, you are still receiving a service from them - they are still the custodians / managers of your investments and providing the legal / regulatory wrap as they relate to pensions. No firm will do that for £0, so whethe ryou leave it with the Pru or transfer it you will still pay it (although cost may be different).

Like others I can't see how you will get back less than you paid in. The LGPS AVCs that my wife and I pay in to have produced good returns AND we have saved tax on the way in AND we will take all the money out tax free when we retire. You are closing down any chance to understand what is going on with your AVC and focusing on "how do I get out of it" so will leave that aspect.