Can I use AVC WISE or Do I have to use Prudential with regards to my AVC?

daveyjp

Venomspread3r said:

Hey @OldBeanz thanks for the reply it's appreciated I guess that picks for me haha!! 

Interesting that you say go for a % that grows the amount with inflation - what sort of % would you be looking at personally if it was you ? 

It used to be the case that with AVCWise you couldn't select a percentage of monthly salary paid into the AVC under salary sacrifice scheme, it had to be a fixed amount each month so check that detail with them.  Its not really an issue.  Set your own percentage and if salary increases you can increase your payment accordingly.

Pru are now part of M&G and the problems reported a few years ago now appear to have reduced significantly.

Venomspread3r

Just going through my application on my money matters AVC and deciding what allocation of my money to have them take on pay day In this example is it the £111.68 or £155 taken from my wages?

Thankyou 

NoMore

As its Salary Sacrifice, they are saying that they will reduce (exchange) your Gross wages by £155, which in reality will only lead to a reduction of £111 of your net pay. So £155 will land in your Pension and you will lose £111 of your take home.

Venomspread3r

That's fantastic I'd budgeted for the 155 so may as well go for that thanks @NoMore

Oggyshoe

After paying into The Prudential via AVC Wise for 3 years and 7 months, I have now retired. My AVC has accumulated a vast profit of £186. I would have been far better putting my money into an ISA or savings account. When I contacted The Pru, I only received generic answers. 

I expected at least a few thousand pounds profit to add to my pension pot! 

Do I have any recourse due to not fully understanding the risks involved, or do I suck it up?


I WOULD JUST LIKE TO WARN ALL THOSE THINKING OF INVESTING YOUR HARD EARNED MONEY, TO BE AWARE OF THE PITFALLS OF THIS SCHEME(SCAM)!

QrizB

Oggyshoe said:

After paying into The Prudential via AVC Wise for 3 years and 7 months, I have now retired. My AVC has accumulated a vast profit of £186. I would have been far better putting my money into an ISA or savings account.

How large was your AVC? Which funds did you choose to invest your AVC in?

Oggyshoe said:

I expected at least a few thousand pounds profit to add to my pension pot! 

What led to expect that?

Oggyshoe said:

Do I have any recourse due to not fully understanding the risks involved, or do I suck it up?

Did you take investment advice from a professional, or did you choose your investments yourself?

Oggyshoe said:

I WOULD JUST LIKE TO WARN ALL THOSE THINKING OF INVESTING YOUR HARD EARNED MONEY, TO BE AWARE OF THE PITFALLS OF THIS SCHEME(SCAM)!

It's not a scam.

dunstonh

After paying into The Prudential via AVC Wise for 3 years and 7 months, I have now retired. My AVC has accumulated a vast profit of £186. I would have been far better putting my money into an ISA or savings account.

Any profit or loss would be dedendent on what you invested in.     Given the period in question, it seems unlikely that an ISA or savings account would have been better than any investments available on Pru except gilts/bonds.

And with the uplift you get on a pension over an ISA or savings (6.25% if you are a basic rate taxpayer whilst working and retired) it seems unlikely you are worse off.

Do I have any recourse due to not fully understanding the risks involved, or do I suck it up?

You do not get compensation for not reading or understanding what you are buying.

I WOULD JUST LIKE TO WARN ALL THOSE THINKING OF INVESTING YOUR HARD EARNED MONEY, TO BE AWARE OF THE PITFALLS OF THIS SCHEME(SCAM)!

Maybe we should counter-warn people that your lack of knowledge and understanding is leading to silly statements like that and they should ignore what you say. 

daveyjp

Or alternatively.

If you chose to invest in long term investment products don't be surprised if after just over 3 years you don't make much of a return.

If you don't know what a long term investment product is ask someone who does before buying.