Lump Sums to AVC Application Deadline

[pumi63]

Hi folks ,

Thank you for replying i started AVC very late around 4 years ago , and had invested in a split of 20% cautious , 30% balanced and 50% growth .
I got 7 years left before i return the boots and uniform and a few weeks ago invested in the growth fund 100% but this appears to have been a bad move as its losing money !

I don't expect fabulous returns or riches but would be nice to get a little more growth than what i am investing weekly . This is why the RM should offer free non-binding advice on where to invest depending upon the length of time you wish to invest . As you can gather i am not investment savvy but i am just trying to get a little extra for some decent 'food ' else its the food-bank for me and the missus ....

Apart from the funds and what the mean , RM give nothing else .

Nationwide apparently offer free financial advice if you invest a minimum of £100 per month into their scheme but its a shame that neither RM nor Scottish Widows do anything like that .

Thank you

Pum

[RobertT]

All very interesting guys

Bottom line ... using all my fingers and toes I make 85% of £1400 = £1190 is that going to be the sum I have to put in the authorisation box? I'm not interested in what I'm saving or making, I just want to put the max in.

I don't want to mess this up as it was hard enough press ganging a teenager into emailing and printing the form off, I think they could have made it a bit more user friendly

The RMPP say you can pay 85% of your 'aggregated pay' into your pension, so that would presumably include basic, allowances and OT.

The guide to AVC's(page 7) says this:

• You can also pay one-off contributions from time to time, although these have to be deducted through the Company’s payroll system – payment by cheque is no longer accepted;

• A maximum contribution, when aggregated with your other contributions to the RMPP (and other deductions), of around 85%* of your pay

*The limit of around 85% is necessary to allow for certain other deductions such as National Insurance contributions and pension contributions to be made from your pay

A general point ... not many people even seem to know about this in my DO .... perhaps they're too busy rushing off to book their holiday?

Most people don't take much notice of their pension in general, until it's nearly time to take it. In my experience, most of my ex colleagues had never even heard of AVC's, let alone considered paying into them.

[RobertT]

Hi folks ,

Thank you for replying i started AVC very late around 4 years ago , and had invested in a split of 20% cautious , 30% balanced and 50% growth .
I got 7 years left before i return the boots and uniform and a few weeks ago invested in the growth fund 100% but this appears to have been a bad move as its losing money !

Still plenty of time for things to turn round!

Not only are you currently buying units at a lower price, which will hopefully increase in time, but you'll also benefit from income(dividends) too, which will be reinvested for you.

I don't expect fabulous returns or riches but would be nice to get a little more growth than what i am investing weekly . This is why the RM should offer free non-binding advice on where to invest depending upon the length of time you wish to invest . As you can gather i am not investment savvy but i am just trying to get a little extra for some decent 'food ' else its the food-bank for me and the missus ....

Apart from the funds and what the mean , RM give nothing else .

Nationwide apparently offer free financial advice if you invest a minimum of £100 per month into their scheme but its a shame that neither RM nor Scottish Widows do anything like that .

Thank you

Pum

They do provide a very informative 'guide to AVC's', which goes into quite a lot of detail in regards to your options at different ages and your attitude to risk, etc.

Scottish Widows also provide a website where you can see how the funds have performed over the years.

With the help of that information plus a little bit of time, it's perfectly possible to educate yourself a little. There are only 7 funds after all, it's not as if it's a SIPP with potentially thousands of choices.

There's also the Lifestyle option!

[posted]

a few weeks ago invested in the growth fund 100% but this appears to have been a bad move as its losing money !

I don't expect fabulous returns or riches but would be nice to get a little more growth than what i am investing weekly . This is why the RM should offer free non-binding advice on where to invest depending upon the length of time you wish to invest . As you can gather i am not investment savvy but i am just trying to get a little extra for some decent 'food ' else its the food-bank for me and the missus ....

echo what RobertT says. First of all, investments should be a mid-long term play. If you've only invested in this other fund a few weeks ago then give it some time. Sounds like you have a balanced portfolio.

As for Financial Advice. I don't think RM would want to get in that muddy water. Especially if they already have other schemes (Career Average or whatever it's called) that invest your contributions only and all they need to do is tell you your benefits.

Going forward with the new proposed scheme they'll again, essentially, invest it for you so you don't have to make that decision.

I think it's good enough that at retirement time they signpost you to reputable financial/retirement planning but I don't think it's paid-for IFA.

[posted]

All very interesting guys

Bottom line ... using all my fingers and toes I make 85% of £1400 = £1190 is that going to be the sum I have to put in the authorisation box? I'm not interested in what I'm saving or making, I just want to put the max in.

I don't want to mess this up as it was hard enough press ganging a teenager into emailing and printing the form off, I think they could have made it a bit more user friendly

A general point ... not many people even seem to know about this in my DO .... perhaps they're too busy rushing off to book their holiday?

I was wondering that myself - do we put in the max if that is what we want and they deduct 15% automatically ?

No, you put in the max you want deducted, which can be no more than 85% of the expected amount.
If you put in more (say the full £1400), I'm sure they'll just cap it at 85% anyway, whatever the escrow amount is

But if you put in the monetary amount of £1190, then say if the escrow money was £950, they'll still deduct £1190, you'll just get the remainder in your pay packet... after tax & NICs of course

[Dorset Plodder]

Thanks for the replies guys

[Deadly]

I'm going to sound like a bit of a technophobe here but how do I fill in the form on the app? I can see it but can't fill in any of the sections for my name etc. Also, what/where is my member number? Thanks.

[claretandblue]

I'm going to sound like a bit of a technophobe here but how do I fill in the form on the app? I can see it but can't fill in any of the sections for my name etc. Also, what/where is my member number? Thanks.

You need to use an app to fill it in, your member number will be on any statements for the pension scheme.

[freespeech]

I'm going to sound like a bit of a technophobe here but how do I fill in the form on the app? I can see it but can't fill in any of the sections for my name etc. Also, what/where is my member number? Thanks.

You need to use an app to fill it in, your member number will be on any statements for the pension scheme.

I just downloaded the form, filled it in, took a pic and emailed it back.

[Deadly]

Thanks both.