How long from beginning to AVC Payout

Hawkey99 · Post by **Hawkey99** » 24 Feb 2019, 21:34

I know it takes roughly 3-4 months from applying for your Pension to actually receiving it but just wondered how long it takes to actually receive any AVC payment due as some one said it takes longer than actually receiving your pension.

Anybody been through this process ?

Thanks

Post by **fly-catchers** » 24 Feb 2019, 22:13

My AVC paid as my lump sum was received on my birthday. For some reason they actually give you 90% of the amount that it is currently worth. Leave the whole amount in your AVC statement as if they have haven't paid you. And 12 weeks later disinvest it and pay you the remaining 10%! In that time it had dropped in value by about £300 because the stock market was begining its downturn.

Hawkey99 · Post by **Hawkey99** » 25 Feb 2019, 07:40

What was the timescales please. Was it within the 4 month of applying for your pension.

When I take mine, Ideally the lump sum would be paid the same time as the pension. i.e. within the 4 months since I started the process.

Post by **RobertT** » 25 Feb 2019, 14:06

I have no personal experience of this, but based on previous posts on these forums:-

Assuming you're taking your pension at NRA, then the pensions people should contact you beforehand to start the process. If not contact them!

You should receive your AVC/tax free lump sum on your 60th birthday(or possibly a few days either way depending on weekends/ bank holidays).

Your first and all subsequent monthly pension payments should hit your bank account on the last working day of the month.

Some people say you'll get 90% of your AVC cash upfront with the rest following 2-3 months later. While others say you'll get it all in one go. I'm not too sure why there's a difference, but I think it probably depends on how much money is in your pot and/or which fund/s it's invested in?

If you're taking your pension before NRA, then you will have to initiate the process yourself and it seems to be a bit hit or miss as to whether things go through within 3-4 months or not. I assume it will depend on pension dept. workload, time of year and the complexity of your pension benefits(it might take longer for people with AVC's or with 2 or more separate RM employments, for example).

BeamishStout · Post by **BeamishStout** » 25 Feb 2019, 17:30

Hawkey99 wrote:What was the timescales please. Was it within the 4 month of applying for your pension.

When I take mine, Ideally the lump sum would be paid the same time as the pension. i.e. within the 4 months since I started the process.

As per fly-catchers and RobertT's posts.

I took all my pensions on my 60th birthday in April last year. I received the 90% value of my AVC fund on my birthday (start of the month). My first pension was paid out on the last working day of that month so it was another 4 weeks or so after my 60th when I got my first pension payment(s) from RM.

Re the timescales, RM sent out my pensions options in early December the previous year (4 months before my 60th) when the process started. My initial reply (i.e my application) led to RM replying quite promptly asking for Lifetime Allowance Declaration, Payment Details and photocopy of ID. Things went naturally dormant until 1 month before my 60th. At this point I had to decide what to do with any AVC funds.

Whether these timescales still hold true ......

Hawkey99 · Post by **Hawkey99** » 25 Feb 2019, 20:16

Thank all.

My situation is slightly different as Im not taking it on my birthday but in the middle of the year.

I assume its all the same process. Just thought I read somewhere that you could end up waiting a while for your AVCs to be sorted so by putting a 4 months date on the letter could run into 6 months or so.