Section C Flexiplan AVC vs Lifetime ISA (LISA)

[Marke87]

Hi guys,

So I’ve been paying into a Lifetime ISA with Hargreaves’s Lansdown for the last 4 years. I was wondering if paying into the Flexiplan would be more beneficial?

I know the benefits with the LISA are
Government add 25% (up to £1000 a year)
Tax free
Take out at 60 years old.

What benefits are attached to the Flexiplan?

Thanks anyone :-)

[whereami]

The benefits to Flexiplan and bonus plan are that it comes off your top line so you don't get taxed on the contribution or pay national insurance.

With any AVC you could transfer it to a SIPP and access it at 55 currently. This will prob change to 57/58 to inline with state pension age increase.

With a LISA you could access it at 60, put it (or a portion) into a SIPP, recieve immediate tax relief of additional 20%. Which works out at an additional 6% fir basic rate tax payer.

[RobertT]

When the new CDC pension starts, assuming it does, no more payments will be allowed into either Bonusplan or Flexiplan.

But there will be a DC AVC and the Lump Sum Booster to pay extra into instead.

The same tax breaks are expected to apply.

[Hyrrokkin]

When the new CDC pension starts, assuming it does, no more payments will be allowed into either Bonusplan or Flexiplan.

But there will be a DC AVC and the Lump Sum Booster to pay extra into instead.

The same tax breaks are expected to apply.

RobertT i might have asked this before but cannot remember ?

I am assuming we cannot transfer our AVC's away from SW to another provider until at least 55

I know these AVC's are attached to the RMPP DB pemsion but it would be nice if we had the option to transfer our AVC's to another provider
Especially as it will be quite a few years before in my case can do so

Just a query

[RobertT]

When the new CDC pension starts, assuming it does, no more payments will be allowed into either Bonusplan or Flexiplan.

But there will be a DC AVC and the Lump Sum Booster to pay extra into instead.

The same tax breaks are expected to apply.

RobertT i might have asked this before but cannot remember ?

I am assuming we cannot transfer our AVC's away from SW to another provider until at least 55

I know these AVC's are attached to the RMPP DB pemsion but it would be nice if we had the option to transfer our AVC's to another provider
Especially as it will be quite a few years before in my case can do so

Just a query

You can transfer them at any age. But you won't be able to access the money, wherever it is, until the legal minimum age, which is currently 55 and expected to increase to 57 in 2028.

That age may well rise in the future!

[Hyrrokkin]

When the new CDC pension starts, assuming it does, no more payments will be allowed into either Bonusplan or Flexiplan.

But there will be a DC AVC and the Lump Sum Booster to pay extra into instead.

The same tax breaks are expected to apply.

RobertT i might have asked this before but cannot remember ?

I am assuming we cannot transfer our AVC's away from SW to another provider until at least 55

I know these AVC's are attached to the RMPP DB pemsion but it would be nice if we had the option to transfer our AVC's to another provider
Especially as it will be quite a few years before in my case can do so

Just a query

You can transfer them at any age. But you won't be able to access the money, wherever it is, until the legal minimum age, which is currently 55 and expected to increase to 57 in 2028.

That age may well rise in the future!

So we can transfer AVC's to another provider like Hargreaves Lansdown as an example before 55 or have to wait until the AVC current scheme closes ?

[milly]

When the new CDC pension starts, assuming it does, no more payments will be allowed into either Bonusplan or Flexiplan.

But there will be a DC AVC and the Lump Sum Booster to pay extra into instead.

The same tax breaks are expected to apply.

RobertT i might have asked this before but cannot remember ?

I am assuming we cannot transfer our AVC's away from SW to another provider until at least 55

I know these AVC's are attached to the RMPP DB pemsion but it would be nice if we had the option to transfer our AVC's to another provider
Especially as it will be quite a few years before in my case can do so

Just a query

You can transfer them at any age. But you won't be able to access the money, wherever it is, until the legal minimum age, which is currently 55 and expected to increase to 57 in 2028.

That age may well rise in the future!

So we can transfer AVC's to another provider like Hargreaves Lansdown as an example before 55 or have to wait until the AVC current scheme closes ?

I transferred my AVC to Hargreaves Lansdown in 2020 and once new scheme starts I will transfer my RMDCP Pension to Hargreaves Lansdown as well.
I'm positive you have to wait until the current scheme ceases.

[RobertT]

So we can transfer AVC's to another provider like Hargreaves Lansdown as an example before 55 or have to wait until the AVC current scheme closes ?

What you can do with Flexiplan and Bonusplan varies slightly.

I don't think you can transfer Flexiplan while you're still paying into it, so you'll have to wait until the RMPP closes, voluntarily stop contributions or leave the business.
Although in theory, I think you could stop paying, transfer and then start a new Flexiplan?

The literature says it's not possible to stop paying into Bonusplan while you're an active member of the RMPP. Therefore you have wait until the scheme closes or you leave, to transfer.
Although I have it in writing from the PSC, that it is possible to stop paying in while still an employee. But in doing so, you also cease to be an active member of the RMPP and so payments into the DBCBS will also stop.
Another example of conflicting information!!!

I believe there is an upper age limit of 75 for transferring out, otherwise you can do it at any age.

[Hyrrokkin]

When the new CDC pension starts, assuming it does, no more payments will be allowed into either Bonusplan or Flexiplan.

But there will be a DC AVC and the Lump Sum Booster to pay extra into instead.

The same tax breaks are expected to apply.

RobertT i might have asked this before but cannot remember ?

I am assuming we cannot transfer our AVC's away from SW to another provider until at least 55

I know these AVC's are attached to the RMPP DB pemsion but it would be nice if we had the option to transfer our AVC's to another provider
Especially as it will be quite a few years before in my case can do so

Just a query

You can transfer them at any age. But you won't be able to access the money, wherever it is, until the legal minimum age, which is currently 55 and expected to increase to 57 in 2028.

That age may well rise in the future!

So we can transfer AVC's to another provider like Hargreaves Lansdown as an example before 55 or have to wait until the AVC current scheme closes ?

I transferred my AVC to Hargreaves Lansdown in 2020 and once new scheme starts I will transfer my RMDCP Pension to Hargreaves Lansdown as well.
I'm positive you have to wait until the current scheme ceases.

I have a SIPP with HL will do the same when the current scheme ends
Good advice

[Hyrrokkin]

So we can transfer AVC's to another provider like Hargreaves Lansdown as an example before 55 or have to wait until the AVC current scheme closes ?

What you can do with Flexiplan and Bonusplan varies slightly.

I don't think you can transfer Flexiplan while you're still paying into it, so you'll have to wait until the RMPP closes, voluntarily stop contributions or leave the business.
Although in theory, I think you could stop paying, transfer and then start a new Flexiplan?

The literature says it's not possible to stop paying into Bonusplan while you're an active member of the RMPP. Therefore you have wait until the scheme closes or you leave, to transfer.
Although I have it in writing from the PSC, that it is possible to stop paying in while still an employee. But in doing so, you also cease to be an active member of the RMPP and so payments into the DBCBS will also stop.
Another example of conflicting information!!!

I believe there is an upper age limit of 75 for transferring out, otherwise you can do it at any age.

Ok great advice as always - learn something new all the time
I have a SIPP with HL so i will wait until the scheme ends then transfer all the AVC's into that - while starting the new one of course
Nothing really against SW but the fund choice is limiting and i find the website confusing and hard to follow

Thanks RoberT and milly

[RobertT]

Ok great advice as always - learn something new all the time
I have a SIPP with HL so i will wait until the scheme ends then transfer all the AVC's into that - while starting the new one of course
Nothing really against SW but the fund choice is limiting and i find the website confusing and hard to follow

Thanks RobertT and milly

Is there a specific reason you want to transfer out? As the whole point of AVC's is to fund the tax free cash with RMPP pension benefits. Particularly NRA60 because you have the DBCBS for NRA65.

As soon as you transfer out, only 25% is guaranteed to be tax free.

[Hyrrokkin]

Ok great advice as always - learn something new all the time
I have a SIPP with HL so i will wait until the scheme ends then transfer all the AVC's into that - while starting the new one of course
Nothing really against SW but the fund choice is limiting and i find the website confusing and hard to follow

Thanks RobertT and milly

Is there a specific reason you want to transfer out? As the whole point of AVC's is to fund the tax free cash with RMPP pension benefits. Particularly NRA60 because you have the DBCBS for NRA65.

As soon as you transfer out, only 25% is guaranteed to be tax free.

I was thinking from the thought of having AVC's and HL SIPP together in one pot - not touching anything until NRA