not on facebook
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED APR 2019)... HERE

ANNOUNCEMENT : NEW CORONAVIRUS FORUM... HERE



Thinking of increasing my AVC contribution to GBP110 a week.

29 Nov 2019, 07:48

foxyjarvis wrote:I've been making maximum contributions for the last 3 years and left it in the AVC cash fund, because I thought I've made 32% already, let's not be greedy. That was naive on my part. The new Scottish Widows website is much more user friendly and over the last 3 months I have been transferring more and more of the Cash Fund into the Growth Fund. Annoyingly you can't do this in real time, I believe if you change where the funds are going before 14.30, it is done the next day. I've made a far larger return over these 3 months in the Growth Fund, than the 3 years I spent in the Cash Fund. When I first joined the FTSE was 6900 pts, 3 years and 3 months later it's 7400 points. My perception is if there is a clear Tory majority, that will rise considerably.

The Cash fund is crap and only really suitable for the short term when you're trying to 'lifestyle' your investments shortly before retirement. So if you're investing for the long term, always go for the equity funds.
The performance data of the AVC funds available can be found here: https://digital.feprecisionplus.com/cor ... ory=2rmp62

Also read the RMPP AVC guide: https://www.royalmailpensionplan.co.uk/ ... n-benefits

You've only been investing for a few months and so far you've done well, but always bear in mind that past performance is not a guide to future returns and shares go down as well as up.

I experienced the crash of 2008 when the FTSE100 dropped 31% during that year, from a high of 6,456 down to 4,434. But I've reaped the rewards since and have long since seen my investments not only regain their losses at the time, but go a lot higher too.

Thinking of increasing my AVC contribution to GBP110 a week.

29 Nov 2019, 18:46

RobertT wrote:
Dindin wrote:Can I ask what happens to your £110 a week avc if you die? Does your spouse get just half ?

AVC's(Bonusplam & Flexiplan) are basically just saving accounts that benefit from money from the government in the form of tax relief and salary sacrifice(PSE). Bonusplan also gets extra contributions from RM.

If you die, the full balance is added to the lump sum death benefit that gets paid out from the RMPP.

So in my opinion AVC's act in two ways:

1. Provides more money for your retirement; or
2. Provides a form of life assurance on your death.

More AVC info here: https://www.royalmailpensionplan.co.uk/ ... n-benefits

Thanks Robert T

Thinking of increasing my AVC contribution to GBP110 a week.

02 Dec 2019, 06:01

Hi all
Do fixed allowances enable you to increase AVC payments.

Thanks

Thinking of increasing my AVC contribution to GBP110 a week.

02 Dec 2019, 19:35

Thailand1 wrote:Hi all
Do fixed allowances enable you to increase AVC payments.

Thanks

Taken from the RMPP website(https://www.royalmailpensionplan.co.uk/ ... n-benefits) :

How much can I pay in?

In theory, the most you can pay in is 100% of your taxable pay. This includes the 6% that you normally pay into the RMPP, as well as any extra payments you make using Addplan, Bonusplan and Flexiplan.

However, there are other things that need to come out of your pay – like National Insurance contributions, for example – so, in practice, the maximum is likely to be around 85%.


If you want to stick within the limits for PSE, then as far as I know only basic pay is used.

Thinking of increasing my AVC contribution to GBP110 a week.

02 Dec 2019, 22:20

RobertT wrote:
Thailand1 wrote:Hi all
Do fixed allowances enable you to increase AVC payments.

Thanks

Taken from the RMPP website(https://www.royalmailpensionplan.co.uk/ ... n-benefits) :

How much can I pay in?

In theory, the most you can pay in is 100% of your taxable pay. This includes the 6% that you normally pay into the RMPP, as well as any extra payments you make using Addplan, Bonusplan and Flexiplan.

However, there are other things that need to come out of your pay – like National Insurance contributions, for example – so, in practice, the maximum is likely to be around 85%.


If you want to stick within the limits for PSE, then as far as I know only basic pay is used.


Spot on RobertT. It took a while for me to find this out, but that is correct, as allowances have nothing to do with your hourly rate and THAT is what is used to calculate your limit.

Previous page Next page


Page 1 of 1