A.v.c

beansy

Hi

I have been working in the NHS for 23 years but have only been contributing into the Superann. pension scheme for 17 years (some of which were only p/t).

When I first joined it was not compulsory for p/t employees to contribute to the scheme and I could not afford it at that time. In 1992 I increased my hours from 25 to 32 and took this opportunity to begin paying superann. with my wage increase. At this time I also started paying into an AVC up to the maximum allowance at the time - 6% Superann, 9% AVC. Originally with Equitable Life which I think is now Halifax.

I opted for the AVC as opposed to buying additional years service, as you had to state what age you planned to retire at in order to calculate the payment/additional years and I preferred more flexibility.

During this time I don't appear to have amassed a great amount in my AVC pension pot and at 55 I am wondering whether or not to continue paying into this scheme (AVC), or stop my payments (I currently pay AVC £190.68 pm, Superann £127.12) and look for an alternative tax free investment. I am not sure at what age I may retire - my state pensionable age is 63 - but I don't intend to work until then!!

Any ideas/suggestions around this would be gratefully received.

Thank you.

uiui

also teacher but don't have max years -regarding fsavc, the financial ombudsman ruled in my favour recently[wrongly sold],it took four years.

jem16

uiui wrote: »

also teacher but don't have max years -regarding fsavc, the financial ombudsman ruled in my favour recently[wrongly sold],it took four years.

Why was it wrongly sold?

dunstonh

uiui wrote: »

also teacher but don't have max years -regarding fsavc, the financial ombudsman ruled in my favour recently[wrongly sold],it took four years.

Some years back there was a general feeling that FSAVCs were not as good as AVCs. However, since A day that has reversed and FSAVCs are largely better than AVCs (unless employer enhancements). Its virtually impossible to get an FSAVC complaint upheld nowadays because a bit more common sense is applied to it now and that FSAVCs are better for most people.

This highlights the often stupid position that some complaints get handled under.

Andy_L

jem16 wrote: »

Why was it wrongly sold?

I would guess because Uiui could have bought extra years instead as they didn't have maximum years service. Pretty much the opposite of the OP.

Dudog

At the end of the day if it is possible to get maximum years into pension you are not eligible to contriburte to an AVC of any description.Nothing to do with earning maximums.You are not allowed to buy AVC with a view to retiring early.How does he get his money back?

dunstonh

At the end of the day if it is possible to get maximum years into pension you are not eligible to contriburte to an AVC of any description

That is not correct.

You are not allowed to buy AVC with a view to retiring early.

That is why you purchased an FSAVC instead of an AVC.

How does he get his money back?

He doesnt. He has not been mis-sold.

Andy_L

Dudog wrote: »

At the end of the day if it is possible to get maximum years into pension you are not eligible to contriburte to an AVC of any description.Nothing to do with earning maximums.

Repeaedly saying something does not make it true. Either put up a link or get back under your bridge