NHS AVC or ready-made SIPP

mamacita63

Hi, I am 60 and working full time in the NHS for the next few years and then hoping to go part time. To do this I need to reduce my mortgage by paying some of it off in 2026 when the fixed rate ends. I am paying into the 2015 pension scheme and I also want to put about £1000 a month (pension payments from 1995 section) into either a SIPP or AVCs so that I can get the tax relief. I've done lots of research and trying to decide. So, two questions:
1. Am I correct in thinking I can't access the AVCs until I retire from the main NHS pension? In which case I don't think it suits my needs as I want flexibility.
2. Looking at the simplest personal pensions for a person with no previous knowledge of SIPPs etc. can anyone give me any pointers? I think I probably need a low-ish risk ready-made pension as I may need to access some of it in a few years but it's a bit bewildering. Anybody have one they recommend, or any tips at all? I've been looking at Vanguard, Halifax, PensionBee etc. Low fees are important as I probably won't get big returns.

QrizB

mamacita63 said:

Hi, I am 60 and working full time in the NHS for the next few years and then hoping to go part time. To do this I need to reduce my mortgage by paying some of it off in 2026 when the fixed rate ends.

While I have no idea what the investment landscape will be in 2026, typically pensions outperform mortgages. If you're wanting to save inside a pension wrapper to pay off your mortgage, you might be better leaving it invested and instead making mortgage payments from income.

Albermarle

 I think I probably need a low-ish risk ready-made pension 

The pension provider is really just an administrator. They take and allocate payments, organise withdrawals and sort the tax out. They also hold the investments within the pension that you have chosen.

Many pensions will only give you general guidance on what investment(s)to pick . It is your choice and in some cases there can be thousands.

Some providers will offer a limited amount of advice/point you in the right direction, and often they will only have a few choices available anyway. These tend to have higher charges.

In your case I would discount Halifax and also maybe have a look at Nutmeg Open a Private Pension | Boring Money 'Best Buy Pension' | Nutmeg - Nutmeg

or Standard Life Pensions | Standard Life

+ Vanguard is a possibility as you mentioned.

mamacita63

Albermarle said:

 I think I probably need a low-ish risk ready-made pension 

The pension provider is really just an administrator. They take and allocate payments, organise withdrawals and sort the tax out. They also hold the investments within the pension that you have chosen.

Many pensions will only give you general guidance on what investment(s)to pick . It is your choice and in some cases there can be thousands.

Some providers will offer a limited amount of advice/point you in the right direction, and often they will only have a few choices available anyway. These tend to have higher charges.

In your case I would discount Halifax and also maybe have a look at Nutmeg Open a Private Pension | Boring Money 'Best Buy Pension' | Nutmeg - Nutmeg

or Standard Life Pensions | Standard Life

+ Vanguard is a possibility as you mentioned.

Thank you, that is very helpful!

Nurse2047

I pay into the Prudential AVC as can access from age 55 however is age 57 in 2028. 

https://www.mandg.com/pru/workplace-pensions/employees/public-sector-avc-schemes/nhs-avc-scheme/how-avcs-help

https://www.mandg.com/dam/pru/shared/documents/en/avck0433.pdf