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  • cloud_dog
    I'm 50 years old and have a fairly decent final salary pension, but I'm thinking about whether I could work up a plan to give me the potential to retire early. If I leave at aged 55 it reduces my pension by 35%, so I'm looking to see the best way within the next 5 years of trying to make some of that back up.

    I already save as much as I can into various regular savers & accounts, and will pay off my mortgage in a couple of months time giving me around 900 extra a month that I could save potentially for the next 5 years.

    My company has the option of AVCs into Fidelity, however I am a massive scaredy-cat when it come to anything stock market! The idea of saving up 50000 and only ending up with 45000 makes me feel ill! Things I've read advise not investing in the stock market for this kind of 5 year time scale, on the other hand because I'd be investing via a pension the tax relief benefits (I'm a higher rate tax payer) could offset this should the worst happen.

    I just thought I'd post to see if anyone had any thoughts, looking at a 5 year timescale or if there were any other options I could consider?

    Thanks in advance

    Originally posted by dippenhall1
    OP, I'm in a similar position regarding having a decent DB scheme and needing flexibility to leave early (not 55 though ). I am however very comfortable with investments and their roller-coaster nature.

    I don't have the option of drawing my DB early so need to fund the gap. As I am a HRT payer and my company offer 'salary sacrifice', it is a no brainer for me to utilise the company's AVC scheme as the vehicle to build this pot of money.

    Before starting this you need to ensure that any monies paid in to the AVC account would be treated as a 'pot of money' and do not have any additional DB scheme benefits associated with them. You may also wish to confirm that you are able to transfer the AVC monies seperate to the main DB scheme. The reason for this is to ensure that you will be able to transfer the AVC monies to a more flexible pension/SIPP provider (or account within Fidelity) when the time was right for you to draw down (N.B. Fidelity are one of the providers with lower cost in this area).

    It would be worth you confirming the above with your scheme administrators before going down this route. If everything is confirmed ok, then this is a good way of building your 'gap pot'.
    Personal Responsibility - Sad but True

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