We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

25% Lump sum

Tricia10 · 2023-03-11 13:20:23

My husband has retired. One of his final salary pensions is offering a pension of £5,197.74 a year with no lump sum or a tax free cash lump sum of £19,478.38 and a reduced pension of £4368.52 a year (the quote states this includes a £3,670.68 Guaranteed Minimum Pension at age 65 increasing in line with consumer price…

Comments

dunstonh Posts: 120,247 Forumite

12 March 2023 at 4:33PM

I had an AVC with my company final pay pension, the rules changed on the AVC
part of my AVC was 12/1 part was 20/1 (so £12 buys an extra £1 per yr on annual pension, £20 buys £1 etc)
That doesnt sound like an AVC. It sounds like a hybrid scheme, often referred to as additional pension (typically only offered in public sector roles). AVCs by comparison invest in unit linked funds and give no guarnatees/fixed ratios.

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

0