Which pension vehicle to choose?

Izzy_Skint_2

Hello all, and a belated Happy New Year.

I am in a final salary pension scheme in the public sector, which of course gives me two thirds final salary upon retirement *fingers crossed*

I want to save more for my retirement, but I am worried that if I were to effect an AVC with a private company (in this case Standard Life), that I would be taxed heavily on any savings I also take as an annuity upon retirement (along with my works scheme) as this AVC would take me over two thirds salary. Am I correct in this thinking?

If yes, then which would be the most appropriate alternative vehicle for pension investing to top up my works pension.

If no, are there any specific annuity providing products that are preferrable. I have mentioned AVC's, what about stakeholder pensions?

Finally, my state pension. Would I still receive this even if I have my works pension (and, hopefully my other pension arrangements as just mentioned).

Thanks in advance

Graham

Andy_L

Have a look at the ISA vs Pension thread
http://forums.moneysavingexpert.com/showthread.html?t=375217
If you going to get a full 2/3rds pension then, as you've said, the tax advantages of extra pension are debatable

dunstonh

I want to save more for my retirement, but I am worried that if I were to effect an AVC with a private company (in this case Standard Life), that I would be taxed heavily on any savings I also take as an annuity upon retirement (along with my works scheme) as this AVC would take me over two thirds salary. Am I correct in this thinking?

That is incorrect. The rules are more flexible now. Although it was the rule
changes that made AVCs largely obsolete and why schemes are closing them for new business.

If no, are there any specific annuity providing products that are preferrable. I have mentioned AVC's, what about stakeholder pensions?

stakeholder, personal and SIPP as well as stocks and shares ISA are all valid options as well. It depends on your circumstances and what you are trying to achieve with the money and how you want to invest it.

Finally, my state pension. Would I still receive this even if I have my works pension (and, hopefully my other pension arrangements as just mentioned).

Your qualification for the basic state pension has no connection with your personal arrangements.