ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE

ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!

AVC's

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
mark.cup
Posts: 303
Joined: 14 Mar 2010, 20:54
Gender: Male

AVC's

Post by mark.cup »

Just wondering would it be wise to have an AVC fund that was much larger than the 25% tax free money from the main plan?

I know most people set out to cover that so as to maintain the maximum monthly pension but what would be the options with the money left over in the AVC?
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

AVC's

Post by RobertT »

If you have money left over in your AVC you can do 1 of 3 things:

1. Take it all out as cash but pay tax on it
2. Draw it down over a period of time and possibly avoid paying tax depending on your overall income
3. Buy an annuity

There’s some more info here: http://www.royalmailchat.co.uk/communit ... 27&t=69013" onclick="window.open(this.href);return false;
Links to all RM pension related websites are here