Increasing AVC deductions

[milly]

Hi all,
A newbie here..
I have a avc with Scottish Widows,paying in a monthly sum over the last 3/4 years.
I believe regarding a new pension will be starting in Oct 2024 all avc will cease.
Can't decide whether to start a new avc or invest the money in a stocks and shares isa for better returns.
Thinking of retiring in 6/7 years time.Been paying in£50 a myth in my avc.
Also could I transfer my avc out of my Scottish Widows into something else?
All replies will be much appreciated.

It sounds like you're in section A, B or C(or possibly F) of the RMPP and currently in the DBCBS?

AVC's are paid, technically by RM rather than you, before tax and NIC's and will benefit from tax relief and salary sacrifice(PSE), and in certain circumstances can be accessed totally tax free when the time comes.

ISA's are tax free on the way out, but your payments into them come out of your net pay, so you'll already have paid tax and NIC's on that money.
Meaning for most people, pensions which includes AVC's are the most tax efficient way to save, even if you do pay some tax on the way out.

ISA's and personal pensions will provide a much bigger choice of investments than AVC's, but that doesn't necessarily mean better returns.

You can transfer your AVC's into a personal pension with virtually any other pension provider. You can then access your money from there from the legal minimum age.

All good advice, however pensions are always at the mercy of governments who can't help tinkering with them.
If I was in 20's or 30's I wouldn't be going overboard contributing to a pension due to potential government interference.

So is everything else. Nothing is immune from government change and interference, regardless of the party in power.

Unless there's certainty it makes it difficult to plan for your retirement, so tying up too much money in a pension is very risky if some bureaucrat can change your retirement age on a whim.

[milly]

You assume that I should be arguing with you about your crackpot ideas...... hoarding gold, the imminent collapse of fiat money, how Royal Mail Pension schemes are in danger of collapse, how people are being oppressed by a financial elite etc etc etc. To do that would in a way give your assertions some validity. They are baseless.
After all, you have in the past been accused of being being one of the tin foil hat brigade. I think that sums it up.

Renrag, your post has aged like milk,Gold just hit an all time high on Friday and will continue to move higher as the financial system deteriorates.
I suggest you get down to Lidl and get yourself a roll of tinfoil and fashion yourself a hat

[yellowbelly]

You assume that I should be arguing with you about your crackpot ideas...... hoarding gold, the imminent collapse of fiat money, how Royal Mail Pension schemes are in danger of collapse, how people are being oppressed by a financial elite etc etc etc. To do that would in a way give your assertions some validity. They are baseless.
After all, you have in the past been accused of being being one of the tin foil hat brigade. I think that sums it up.

Renrag, your post has aged like milk,Gold just hit an all time high on Friday and will continue to move higher as the financial system deteriorates.
I suggest you get down to Lidl and get yourself a roll of tinfoil and fashion yourself a hat

Why the baiting of renrag on a thread that they last posted on over a year ago?

Makes me smile when people think that 'investing' in gold is the panacea to financial collapse. It might be 'nice' to hold as diversification alongside other 'normal' investments but as a cast iron solution to financial collapse that you like to forecast it's a nonsense.

Unless you've bought the smallest value gold coins it is possible to do so and have them at home, how are you going to get to your gold or the value of your gold if the financial system collapses 'Walking Dead' style. Is it in a vault in London or Switzerland - how are you physically going to get to it? Where's the record of it in your name - oh yes in a nominee service whose website is down.

Have you got a shotgun and armoured 4 x 4 to get to London or Zurich where it's stored? WIll the internet still be up to be able to cash the value of your gold into - wait for it - fiat money the value of which has already collapsed and is still collapsing?

Even if you've got the smallest value coins possible in your house, when you flash your cash in front of the heavies armed with machetes who've taken over the remnants of the local LIdl do you think they'll give you change for the roll of tinfoil to keep yourself in hats that you want to barter your gold sovereign for?

Let it go, it's summer, enjoy the weather.

[milly]

You assume that I should be arguing with you about your crackpot ideas...... hoarding gold, the imminent collapse of fiat money, how Royal Mail Pension schemes are in danger of collapse, how people are being oppressed by a financial elite etc etc etc. To do that would in a way give your assertions some validity. They are baseless.
After all, you have in the past been accused of being being one of the tin foil hat brigade. I think that sums it up.

Renrag, your post has aged like milk,Gold just hit an all time high on Friday and will continue to move higher as the financial system deteriorates.
I suggest you get down to Lidl and get yourself a roll of tinfoil and fashion yourself a hat

Why the baiting of renrag on a thread that they last posted on over a year ago?

Makes me smile when people think that 'investing' in gold is the panacea to financial collapse. It might be 'nice' to hold as diversification alongside other 'normal' investments but as a cast iron solution to financial collapse that you like to forecast it's a nonsense.

Unless you've bought the smallest value gold coins it is possible to do so and have them at home, how are you going to get to your gold or the value of your gold if the financial system collapses 'Walking Dead' style. Is it in a vault in London or Switzerland - how are you physically going to get to it? Where's the record of it in your name - oh yes in a nominee service whose website is down.

Have you got a shotgun and armoured 4 x 4 to get to London or Zurich where it's stored? WIll the internet still be up to be able to cash the value of your gold into - wait for it - fiat money the value of which has already collapsed and is still collapsing?

Even if you've got the smallest value coins possible in your house, when you flash your cash in front of the heavies armed with machetes who've taken over the remnants of the local LIdl do you think they'll give you change for the roll of tinfoil to keep yourself in hats that you want to barter your gold sovereign for?

Let it go, it's summer, enjoy the weather.

Gold is nothing more than an insurance policy to protect your purchasing power and an indication that the financial system is in bad shape as it accounts for all the money that has been created out of thin air.
As for Renrag's gaslighting of people he disagrees with, I'm just merely pointing out that he was wrong and I am right
Your scenario for going down to Lidl with Gold coins is insane, Gold will be swapped for productive assets such as land and not for buying tinfoil.
You seem to have the misguided idea that a financial collapse will resemble some kind of zombie apocalypse, I doubt it'll be as dramatic as that.
I've no idea why people hate Gold so much, for thousands of years it has kept it's purchasing power.

[milly]

Unfortunately, it looks like my crackpot ideas are coming true.
Gold keeps going up against worthless paper currencies as the economy collapses.
Maybe it's about time that Renrag and yellowbelly got themselves one of those tinfoil hats that has served me so well over the years
It won't be long before the IMF are called in to bail out the UK.

[milly]

Gold has broken through £3k an ounce this morning, looks like this crackpots predictions are coming true.
Yellowbelly and Renrag will now be eating humble pie

[Jaggs]

Gold has broken through £3k an ounce this morning, looks like this crackpots predictions are coming true.
Yellowbelly and Renrag will now be eating humble pie

I accept I may be misunderstanding things but you appear to be celebrating the value of an asset going up when priced in a currency you think is being devalued and eventually worthless

[milly]

Gold has broken through £3k an ounce this morning, looks like this crackpots predictions are coming true.
Yellowbelly and Renrag will now be eating humble pie

I accept I may be misunderstanding things but you appear to be celebrating the value of an asset going up when priced in a currency you think is being devalued and eventually worthless

I'm not celebrating, far from it, just pointing out that I've been correct about the state of the economy for many years.
All of my NPC detractors have fallen silent after calling me a Tinfoil Hat wearing Crackpot.
Gold isn't rising, the currency is collapsing.

[yellowbelly]

I'm not celebrating, far from it, just pointing out that I've been correct about the state of the economy for many years.
All of my NPC detractors have fallen silent after calling me a Tinfoil Hat wearing Crackpot.
Gold isn't rising, the currency is collapsing.

Au contraire Milly, just busy taking some profits on various assets (including 'paper' gold), also offsetting against some losses to make the most of this year's CGT allowance (whilst a CGT allowance still exists!) as various assets seem to be riding high at the moment. Until I take it out of the
cash machine and buy some LIDL tinfoil it's 1's and 0's though, just need Putin to cut a cable or unleash a computer virus and it's inaccessible (unless you've got it under your mattress) but that's life!

Have also done some balancing in the investments my RMDCP is invested in. Have never trusted the default lifestyle options.

Good luck!

[milly]

Strong rumours that Rachel Thieves is going to reduce the benefits of Salary Sacrifice down to £2k per year.
Who voted for these morons?

[NWpostie]

Strong rumours that Rachel Thieves is going to reduce the benefits of Salary Sacrifice down to £2k per year.
Who voted for these morons?

Definitely not me, Liebour is about to do a 1979 rerun and rob the working class then go cap in hand to the IMF, the lost the Liebour government the general election in 1979.

[milly]

Strong rumours that Rachel Thieves is going to reduce the benefits of Salary Sacrifice down to £2k per year.
Who voted for these morons?

Definitely not me, Liebour is about to do a 1979 rerun and rob the working class then go cap in hand to the IMF, the lost the Liebour government the general election in 1979.

Labour voters were full of it before the election, funnily enough none of my far left colleagues talk about politics anymore

[dudius]

Labour voters were full of it before the election, funnily enough none of my far left colleagues talk about politics anymore

That's because there are no left-wing parties any more - Well ... there are the Greens, which typically lean left, but they have insane policies which even dyed-in-the-wool Marxists like myself wouldn't vote for. The Overton Window has been dragged so far over to the right that getting any proper left-wing politicians in at this point seems to be an impossibility.

[milly]

Labour voters were full of it before the election, funnily enough none of my far left colleagues talk about politics anymore

That's because there are no left-wing parties any more - Well ... there are the Greens, which typically lean left, but they have insane policies which even dyed-in-the-wool Marxists like myself wouldn't vote for. The Overton Window has been dragged so far over to the right that getting any proper left-wing politicians in at this point seems to be an impossibility.

They seem very left wing to me, they're doing the usual of increasing the size of the state and targeting the farmers like good old bolsheviks.

[dudius]

Labour voters were full of it before the election, funnily enough none of my far left colleagues talk about politics anymore

That's because there are no left-wing parties any more - Well ... there are the Greens, which typically lean left, but they have insane policies which even dyed-in-the-wool Marxists like myself wouldn't vote for. The Overton Window has been dragged so far over to the right that getting any proper left-wing politicians in at this point seems to be an impossibility.

They seem very left wing to me, they're doing the usual of increasing the size of the state and targeting the farmers like good old bolsheviks.

You mean the poor, poor farmers passing millions on to their kids?
And how has the size of the state increased, exactly?