Merging pensions and starting AVC?

kiwigirl

Hi All

I've been offered another job and that will mean another pension - I have currently got 3 pensions (2 local government and 1 college) which I was thinking of merging into the new I presume another local government (still waiting for confirmation). I have about £6 - 8k in the others so far and what ever my employer's have included. I'm hoping new employer will be long term and not be moving for a while.

Would it be a good idea to do an AVC to top up? If I do can you stop AVC's in 5 years time or do they have to run until retirement age?

I'm 30 and hopefully the new job will mean that I can finally get a place of my own in around 6 - 12 month depending on market - the house prices are lower where I'm going than at home and a substantial increase of pay to boot. I have a savings in HIA for a house deposit but I will be renting initially to get to know area better and through probation before purchasing and hopefully lower house prices.

TIA

KG

dunstonh

Would it be a good idea to do an AVC to top up?

Maybe, maybe not. AVCs are no longer required to be issued and many occ schemes are closing them to new entrants. A small number can be used in enhance occ scheme benefits but some have to be taken at same time as occ scheme which is no good if you want phased retirement. Also, if you intend to do income drawdown rather than annuity purchase you are better off not using an AVC a lot of the time.

If I do can you stop AVC's in 5 years time or do they have to run until retirement age?

You can stop contributions.

kiwigirl

Thanks will have a good think about pensions before I get paperwork.