07 Jun 2018, 18:58
07 Jun 2018, 21:16
postie2007 wrote:I have £15000 in my AVC pot, my question is it worth me carrying on paying at my current level or reduce contributions . AVC pot will probably be more than 25% of my total pension pot, i aim to retire in 4 years time aged 60 having completed 16 years in the business.
08 Jun 2018, 10:30
08 Jun 2018, 19:34
08 Jun 2018, 22:42
Decky Boy wrote:That's a question that only you can answer and is dependant on a number of factors. At your age (56) saving into a pension makes absolute sense if you have disposable income that you wish to invest/save especially with Pension Salary Sacrafice (PSE) which we have at Royal Mail... as each £10 invested costs us just £6.80
Fund choice is also important as we get nearer retirement age so you may wish to review which fund(s) your invested in as some carry more risk than others. Ultimately what we receive from our AVC's depends on how the funds perform and as a general rule I've found the greater the investment... the greater the return ? ? ?
New pension rules allow us to keep our AVC pot(s) invested till age 75 and/or draw down amounts as we need them. As savvy pensioners best practice may be to draw down an amount just below our individual tax threshold which maximises our income by reducing or minimising the income tax we pay . . . this may not be great for NHS funding or the country's finances in general. . . but hey ho ! ! !
PS l am not a financial adviser and the above post in not advice.
09 Jun 2018, 05:02
heapsy wrote:Will Zurich allow draw down?
09 Jun 2018, 14:59
RobertT wrote:heapsy wrote:Will Zurich allow draw down?
You can't do drawdown directly from your RM AVC funds, but Zurich do offer a drawdown product. Details here. So you may be able to transfer internally?
Otherwise you'll have to transfer to another provider.
There's some general drawdown info here.
The usual use for AVC's is of course to fund the tax free lump sum when taking your main RMPP/RMSPS pension benefits!
09 Jun 2018, 17:11
09 Jun 2018, 17:29
Hawkey99 wrote:I am struggling to understand how you would use your AVC in drawdown. Would you still use this to achieve your 25% tax free lump sum or something else.
23 Jun 2018, 17:29
postie2007 wrote:Thank you, i will wait until pension update info due in Sept and make adjustment to AVC contribution if required.
23 Jun 2018, 20:43
24 Jun 2018, 06:24
Hawkey99 wrote:If I take all of my pension and the 25% tax free is made up entirely of my lump sum.
Is it then possible to actually take it for pension purposes but leave it invested in its current fund.