Can AVC be deferred on aged 60 pension and taken on the 65 pension or is best to take it on your options with part of your lump sum aged 60 or best at 65 which we be taxed not sure .
Pension wise is it worth booking appointment to get advice.
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AVC
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RobertT
- EX ROYAL MAIL
- Posts: 6641
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: AVC
The whole point of AVC's is to use them to fund the tax free cash, so you don't have to give up so much, or potentially any, pension.
As the Cash Balance is predominantly used for the same purpose with Age65 benefits, the logical time to use AVC's is with Age60 benefits.
So the first question you need to ask yourself is do you want the maximum pension, and use the AVC's to fund the tax free cash; or take the maximum lump sum and get 25% of your AVC's tax free with the rest taxable.
Bearing in mind that if you're in section A/B you'll also have a standard lump sum.
There is also the option to transfer out your AVC's and/or the Cash Balance to a personal pension.
Pension Wise offers guidance rather then specific personal advice.
They might be of help to some people, but not others. It probably depends on how clued up you are.
As the Cash Balance is predominantly used for the same purpose with Age65 benefits, the logical time to use AVC's is with Age60 benefits.
So the first question you need to ask yourself is do you want the maximum pension, and use the AVC's to fund the tax free cash; or take the maximum lump sum and get 25% of your AVC's tax free with the rest taxable.
Bearing in mind that if you're in section A/B you'll also have a standard lump sum.
There is also the option to transfer out your AVC's and/or the Cash Balance to a personal pension.
Pension Wise offers guidance rather then specific personal advice.
They might be of help to some people, but not others. It probably depends on how clued up you are.
Links to all RM pension related websites are here