AVC to Drawdown scheme

bucksman

I am looking at options around an old with-profits teacher AVC with the Pru to a drawdown scheme. I was surprised there is a charge for this with M&G (working for the Pru), but I have also been surprised by the one-off fees I am being quoted.  Can these be avoided in any way? I recognise I need to be careful about the management fees too.

dunstonh

. I was surprised there is a charge for this with M&G (working for the Pru), but I have also been surprised by the one-off fees I am being quoted.  Can these be avoided in any way?

How did you think you would pay them?

OldBeanz

Historically Hargreaves and Lansdown offer good value for pensions under £100k and have sensible UK based staff answering the phone if you ever need to call them.

MX5huggy

M&G is the Pru.

Is the AVC tied to the Teachers pension in any way? (My Pru AVC can be used as the tax free lump sum from my local government pension). 

If not probably the best thing to do is transfer the pension to a modern SIPP provider set up to support drawdown as cheaply as possible. 

Albermarle

bucksman said:

I am looking at options around an old with-profits teacher AVC with the Pru to a drawdown scheme. I was surprised there is a charge for this with M&G (working for the Pru), but I have also been surprised by the one-off fees I am being quoted.  Can these be avoided in any way? I recognise I need to be careful about the management fees too.

The Pru charge for 'advice' when moving to drawdown. Something that most other providers do not.

dunstonh

Albermarle said:

bucksman said:

I am looking at options around an old with-profits teacher AVC with the Pru to a drawdown scheme. I was surprised there is a charge for this with M&G (working for the Pru), but I have also been surprised by the one-off fees I am being quoted.  Can these be avoided in any way? I recognise I need to be careful about the management fees too.

The Pru charge for 'advice' when moving to drawdown. Something that most other providers do not.

And according to the Pru terms of business, they do not provide advice.   So, you are paying a higher charge than many advisers to not get advice to put you in a more expensive product that most intermediary platforms with a much more limited investment choice.

bucksman

MX5huggy said:

M&G is the Pru.

Is the AVC tied to the Teachers pension in any way? (My Pru AVC can be used as the tax free lump sum from my local government pension). 

If not probably the best thing to do is transfer the pension to a modern SIPP provider set up to support drawdown as cheaply as possible. 

It is not linked to TP in any way that I am aware.