An extra pension

DictionaryDuck

I've got a company pension, but I thought I'd get a private pension as well to be on the safe side. A friend suggested last night this is illegal. Is this right?

fas3robinj

I have just retired. I had a pension with my employer and was told that it wasn't possible to have a second pension. I took out a free standing AVC (additional voluntary contribution) with Prudential. I'm no expert, but to me it's a pension under a different name. Still got tax relief and stuff. I'm sure others will advise better.... but look into AVC's.

One after thought - My AVC didn't yeald an awful lot when I finally cashed it in after 20 years. I wish now I had used the money to invest in property instead.

Andy_L

Not any more, there used to be limits on the %age of salary you could save but they were recently abolished/modified

However are you sure more pension is the best idea for you? have a look at the "ISA vs Pension" sticky thread
http://forums.moneysavingexpert.com/showthread.html?t=375217

dunstonh

A friend suggested last night this is illegal. Is this right?

Not since 2001 and even if you did it before then and no-one noticed it there is no retrospective penalty.

I had a pension with my employer and was told that it wasn't possible to have a second pension.

That was wrong. As you say an FSAVC (which was made obsolete last year and is now technically a personal pension) is a second pension.

I'm sure others will advise better.... but look into AVC's.

AVCs are largely obsolete now. Occ schemes no longer have to issue them and FSAVCs are no longer available. Personal pensions, SIPPs and stakeholder pensions along with ISAs are the main options.

when I finally cashed it in after 20 years. I wish now I had used the money to invest in property instead.

Why? Over the last 20 years I would estimate the Pru With Profits fund out peformed property.

edit: Just checked the performance of the sector average with profits fund against the Halifax house price index. The data only goes back to 1989 but in that period to yesterday the with profits sector average was 224.4% against Halifax price index at 184.7%. Prus WP fund was an above average performer as well.