AVC Scottish Widows

[Snurgs]

Hi . Does anyone have any experience of cashing in an AVC pot without touching their pension benefits ?

[RobertT]

As far as I'm aware, it's not possible to access your AVC pot directly from your Scottish Widows/AVC account.
If you don't want to take it with your NRA60/65 benefits, you have to transfer it to a personal pension first, and then access it from there.

I have transferred one of my AVC's to a personal pension, and it took much longer than I was originally told!

The PSC will send forms to fill in and return. Plus you'll have to provide copies of identity documents, such as driving licence, passport, utility and council tax bill.

You also have to ask your personal pension provider to supply the PSC with some info.

I was told that once they had all the forms, the transfer would take 3-4 weeks. But it actually took 4 months and would have been longer had I not complained.
That was down to the PSC , not Scottish Widows or my pension provider!

Once it had been transferred, I was able to convert my personal pension to drawdown and take 25% of my total pot as tax free cash, and set up a regular monthly drawdown amount.
That was fairly easy to do online, but will probably depend on the provider.

[Snurgs]

Thank you Robert . I knew you would turn up with the answer ! I'll be phoning them today
to get the ball rolling .I'll let you know how it goes
Thanks

[Meloned1]

Hi sorry for joining the conversation but I have a couple of AVCs and would like to use them with the lump sum part of pension, how do you go about this ? Would I phone the Scottish widows ? Or is it with RMSPS & RMPP do it for you ? Very confusing I’ve read everything but still makes no sense is it me

[RobertT]

Hi sorry for joining the conversation but I have a couple of AVCs and would like to use them with the lump sum part of pension, how do you go about this ? Would I phone the Scottish widows ? Or is it with RMSPS & RMPP do it for you ? Very confusing I’ve read everything but still makes no sense is it me

The RMPP is your point of call for AVC's.

If all you want to do is use them to fund the tax free lump sum when taking your main benefits, you'll get that option when you're going through the process of taking your pension/s.

I haven't taken any of my RM pension yet, but my understanding is you'll get an initial quote which doesn't include either AVC's or DBCBS. Once you've said yes I want to take my pension, you'll get another up to date quote that does include them.

[Meloned1]

Thank you RobertT Another couple of questions if you don’t mind possibly answering ? When taking the pensions the lump sums will they take it over the tax free benefit ? Do you have to include your salary ? Also are you able to leave the DBCBS cash balance to take the following year ? As l for one don’t like the thought of paying tax on my pension. Many thanks for any advice on this

[RobertT]

Thank you RobertT Another couple of questions if you don’t mind possibly answering ?

When taking the pensions the lump sums will they take it over the tax free benefit ?

It depends which section you're in and how much is in your AVC's.

If you're in section A/B, you get a lump sum as standard, so paying tax is more likely.
Section C don't get a lump sum unless you give up some pension, so AVC's are ideal to fund it.

Do you have to include your salary ?

Pension tax free lump sums don't count towards your taxable income. But wages, any taxable amount of AVC/DBCBS, and the pension itself, will.

Also are you able to leave the DBCBS cash balance to take the following year ?

You can transfer it out to a personal pension, but I don't think you can leave it with the RMPP if you've taken your NRA65.

As l for one don’t like the thought of paying tax on my pension. Many thanks for any advice on this

Any income over £12,570 in any one financial year is taxable. That applies wherever it's coming from.

[Meloned1]

Thank you RobertT Another couple of questions if you don’t mind possibly answering ?

When taking the pensions the lump sums will they take it over the tax free benefit ?

It depends which section you're in and how much is in your AVC's.

If you're in section A/B, you get a lump sum as standard, so paying tax is more likely.
Section C don't get a lump sum unless you give up some pension, so AVC's are ideal to fund it.

Do you have to include your salary ?

Pension tax free lump sums don't count towards your taxable income. But wages, any taxable amount of AVC/DBCBS, and the pension itself, will.

Also are you able to leave the DBCBS cash balance to take the following year ?

You can transfer it out to a personal pension, but I don't think you can leave it with the RMPP if you've taken your NRA65.

As l for one don’t like the thought of paying tax on my pension. Many thanks for any advice on this

Any income over £12,570 in any one financial year is taxable. That applies wherever it's coming from.

Many thanks RobertT for your help on this cheers