Advice about AVC wanted

john007john

I have small pension benefits accumulated under an AVC Scheme with Equitable Life.

At present it comprises approx. £5k Equitable With-profits & £8k Equitable Unit Linked.

I understand I can take approx £3.5k as a tax free cash sum, with the remaining £9.5k to secure pension benefits.

I currently have a final salary pension and my ISA is fully funded for this year. My question is how to get the maximum benefit from the £9.5k without paying unnecessary administration charges?

TIA for any advice

dunstonh

My question is how to get the maximum benefit from the £9.5k without paying unnecessary administration charges?

Most annuity providers have a minimum of £10-£15k after tax free cash. So, the fund value is going to eliminate most of them leaving you with a minority who dont normally feature in the best price league. Equitable use Pru for pension annuities and Pru are normally well priced and have a minimum investment higher than £9.5k if you went to them on the open market but do not if its from a company they have a contract with.

Rod1883

I have two questions for you -
Are you able to transfer your FSAVC from Equitable into your company final salary scheme as an AVC?
If so, will your company pension scheme then allow you to take all of your AVC as tax free cash at retirement (assuming it is not more than 25% of the total fund value)?

If both answers are yes, then I suggest that you consider this route (assuming that Equitable don't inflict large penalties to transfer).

Rod