Keep AVC or take the money and run?

dunstonh

Eldi_Dos said:

What would be the normal process when a legacy plan reaches maturity stage ?

if you dont need it at that point, then you would transfer it to a modern plan.

Eldi_Dos

dunstonh said:

Eldi_Dos said:

What would be the normal process when a legacy plan reaches maturity stage ?

if you dont need it at that point, then you would transfer it to a modern plan.

Thanks for your reply as always.

The amount in my plan is not massive but would hopefully be enough to fund the first year of any further education, for my grandkids if they go down that route. Suppose Legacy Plan is a good description if it pans out that way.

Applesarefree

DRS1 said:

Maybe I am being thick but doesn't what you do with the AVC depend on what you do with the main Teacher's pension?  If you are going to be starting the main pension then why would you leave the AVC behind?  Aren't there things you can do with the two together that you could not do (or not do as well) with them separately?

They are separate, I don't have to take my AVC if I take my Teaching Pension. However, I can't add any more into the AVC after I retire. I'm going to leave it for a year after I retire to check how much it has gone up  or not   . 

DRS1

Applesarefree said:

DRS1 said:

Maybe I am being thick but doesn't what you do with the AVC depend on what you do with the main Teacher's pension?  If you are going to be starting the main pension then why would you leave the AVC behind?  Aren't there things you can do with the two together that you could not do (or not do as well) with them separately?

They are separate, I don't have to take my AVC if I take my Teaching Pension. However, I can't add any more into the AVC after I retire. I'm going to leave it for a year after I retire to check how much it has gone up  or not   . 

OK Some public sector schemes have a thing where you combine the AVC and main pension to work out the tax free lump sum available and then let you take all or most of the AVC fund as the tax free lump sum meaning you can keep a higher pension from the main pension fund (avoiding the unfavourable commutation rate for the main pension)