AVC help.

[Lia73]

Hi, I've just started paying AVCs at work. I pay just under 300 per month, which is the maximum I can put in. I've put in 900 over 3 months and intend to retire in about 11 years. When I ran my pension quotations just now, they show the different amounts I could get and lump sum options, then it says AVC cash of £600.. is that a 1 off payment in addition to the lump sum? I am guessing that figure is based on what I have put in so far and will depend on my investments but I am wondering if it is actually worth paying into AVCs if my money is tied up for years but I won't really make much on it. I am thinking it would be better to invest elsewhere. Anyone got any advice?

Watch the charges you pay...I pay into one with prudential and it's got high charges. I'm also no longer paying tax so it doesn't suit me to salary sacrifice anymore. I wish I had just paid into a SIPP or a stocks and shares isa be honest.

The charges are just pennies so that is fine and I'm a basic rate tax payer so I suppose I'm saving there but my colleague who was advising me to start AVCs is a 40 per cent tax payer so maybe it's better for them. I think maybe a stocks and shares isa might be a better option for me.

I would recommend that you pay for pensions advice from a pensions adviser. It has more than paid for itself for our family. If you're in a union, they often have advice on pensions advisers.

Thank you. I am in a union so will check that out.

“AVC” covers a multitude of different schemes and plans if it’s AVC’s linked to local government pension paid via salary sacrifice then they are a brilliant additional pension.

It's with the underground so not quite local government but very similar I think. It is via salary sacrifice. Thanks for your post, it's reassuring.