Taking NRA 60 early, leaving Avcs?

[NorthernBoy]

As the title suggests am I able to take my nra60 at age 55 and leave my avc fund until 60?

I think the answer to this is no, but can anyone confirm this.

Thanks

[RobertT]

It's a subject that was covered the other day on another thread. You have 3 choices with your AVC monies:

1. Use it to fund your tax free lump sum when taking your NRA60/NRA65 benefits. The most common choice.
2. Take up to 25% tax free and use the rest to buy an annuity(income for life).
3. Transfer out to a personal pension separately from taking your NRA60/NRA65 benefits and access any time up to age 75. Normal DC rules will apply: https://www.moneyadviceservice.org.uk/e ... on-schemes" onclick="window.open(this.href);return false;

For more details see:

The guide to AVC's: https://www.royalmailpensionplan.co.uk/ ... s_hr_3.pdf" onclick="window.open(this.href);return false;
Pension flexibility how are you affected: https://www.royalmailchat.co.uk/communi ... 27&t=69013" onclick="window.open(this.href);return false;

[NorthernBoy]

You can use your AVC account to provide a larger cash lump sum and/or regular pension payments when you choose
to take your main RMPP benefits (this includes taking benefits under the flexible retirement options) or you
can take the benefits from your AVC account separately.


Thanks Robert, this is from the AVC guide.

Do you read this that you can take avc at a different time to your main pension benefits?

[RobertT]

Yes!

The AVC guide goes on to say:

What happens to your AVC fund in various circumstances:

• If you leave service or stop paying AVCs, your AVC account will remain invested until you take your main RMPP benefits or until you take your AVC account separately. You also have the choice to transfer your AVC account to another pension scheme or pension provider.

• If you take your main RMPP benefits you have a number of choices. The most common option is to take all of your AVC account as a tax-free cash sum (subject to certain HMRC limits). Alternatively, you may:

• Delay taking your AVC account (in certain circumstances); or
• Take your AVC account before your main RMPP benefits; or
• Convert all or part of the value of your AVC fund into an annuity (an income for the rest of your life – a pension); or
• Transfer the value of your AVC account to another provider who may be able to offer you different choices.

For most people taking their AVC's with their main benefits will be the better choice. But it'll depend on personal circumstances, which will obviously vary.

[NorthernBoy]

Thanks Robert, very helpful as always