Prudential AVC old pension discovered

EOSPETE

I just had a letter from Prudential informing me of a £300 AVC I took out years ago and forgot about. Is it worth paying in more into this 'additional pension' to gain the index linked benefits? I have funds elsewhere at around 4% that could be paid in. ISAs are maxed for this year. I don't need this fund to support me in retirement, but wondered if the account is 'worth more' than the current asset. Many thanks.

Marcon

EOSPETE said:

I just had a letter from Prudential informing me of a £300 AVC I took out years ago and forgot about. Is it worth paying in more into this 'additional pension' to gain the index linked benefits? I have funds elsewhere at around 4% that could be paid in. ISAs are maxed for this year. I don't need this fund to support me in retirement, but wondered if the account is 'worth more' than the current asset. Many thanks.

Have you checked if you are able to contribute more to this AVC? If it's linked to a pension scheme where you are already a deferred member, and it is a true AVC (as opposed to a Free Standing AVC), you won't be able to do so.

dunstonh

 Is it worth paying in more into this 'additional pension' to gain the index linked benefits?

If it's an AVC, only if you are still an active member of the DB pension that it is linked to (assuming they still offer that functionality - 2006 rule change allowed them to stop offering if they wanted).

Its also possible that the version you have is obsolete.    Charges are about a third of what they were 20 years ago.

 I have funds elsewhere at around 4% that could be paid in.

If the AVC is not suitable, then you can still use the pension wrapper with a different product.