AVCs

OutdoorQueen

My first posting…I am currently paying in to the Local Government Pension scheme and I want to start making additional payments via AVCs.  I have the choice of using Prudential or Scottish Widows. 

I am trying to work out what the differences between the two providers are.  My initial reaction is to choose Prudential but that is mainly because I find their website easier to read and understand.  

I’m aware that Prudential have had some difficulties since a software update.  

Has anyone else tried to compare the two providers, or is there generally not much difference between providers?  

Thank you

dunstonh

My first posting…I am currently paying in to the Local Government Pension scheme and I want to start making additional payments via AVCs.  I have the choice of using Prudential or Scottish Widows. 

What is your reason for picking AVCs over alternative options?

I am trying to work out what the differences between the two providers are.  My initial reaction is to choose Prudential but that is mainly because I find their website easier to read and understand. 

How often are you going to be on their website and is that worth it compared to the investment options?

I’m aware that Prudential have had some difficulties since a software update.  

Ever since they moved it to Lancing it went downhill.   However, don't expect their software to be on par with platforms or modern individual plans.

OutdoorQueen

Thank you @dunstonh

In response to your questions: 

What is your reason for picking AVCs over alternative options?
As I understand it, I can amend the amount I’m paying easily should my circumstances change.  I don’t think I can do this with APCs.  I also want to take advantage of the tax relief.   I have looked at a Stocks and Shares ISA but really don’t think I will be able to make good choices regarding what to invest in.  With AVCs I would go for a managed plan.  

How often are you going to be on their website and is that worth it compared to the investment options?
At a guess, once every 2 or 3 months but for me the language that is used in documents and websites is quite important.  If I find it hard to read, I will disregard.  

 I find the world of pensions and investing quite overwhelming.  I cope with mortgages, savings accounts and sorting out insurances etc, but investing is in another league and the information I have read blows my brain.  So, for me I need to keep things straightforward.   

dunstonh

What is your reason for picking AVCs over alternative options?
As I understand it, I can amend the amount I’m paying easily should my circumstances change.  I don’t think I can do this with APCs.  I also want to take advantage of the tax relief.   I have looked at a Stocks and Shares ISA but really don’t think I will be able to make good choices regarding what to invest in.  With AVCs I would go for a managed plan.  

APC is likely to give your the most for your money but lacks flexibility.     
S&S ISA is less likely to the best option but offers virtually the same investments as Pru and Std Life
SIPP is more flexible and whole of market.
PPP/SHP probably outdated now 
Robo providers - simple but not that cost effective
in-house AVCs - old fashioned investment funds, olf fashioned charges and product style and lack functionality which will probably mean you will need to transfer them to a SIPP later on.  Although you can link it to the main scheme for taking the tax-free cash.  The only option that will allow this.

OldBeanz

LGPS AVC's can be taken tax free as a lump sum (within high limits) when taken with the main benefits of the pension. A cherry on the top of a nicely iced bun so well worth doing if you can afford to wait.

A number of us on here have been given 4 figure sums because the Pru's administration has been so atrocious.

MX5huggy

Are either of the providers being offered via Salary Sacrifice? 

daveyjp

Salary sacrifice LGPS AVCs are only available through the Pru.

draiggoch

daveyjp said:

Salary sacrifice LGPS AVCs are only available through the Pru.

I think it depends on the local LGPS. My salary sacrifice AVC is with Clerical medical / Scottish Widows.

OutdoorQueen

MX5huggy said:

Are either of the providers being offered via Salary Sacrifice? 

Yes both Pru and Scottish Widows are via salary sacrifice.  

MX5huggy

OutdoorQueen said:

MX5huggy said:

Are either of the providers being offered via Salary Sacrifice? 

Yes both Pru and Scottish Widows are via salary sacrifice.  

Brilliant, so with the NI savings and the potential to get the money out without paying tax as your tax free lump sum, it really is a great deal. 

I’ve only got a choice of 7 funds with the Pru (one of them being cash). There’s no Global Index Tracker so I have to compromise, maybe SW has one. 

Pru’s customer service is currently terrible.