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Other options when they close the AVCs ?

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.
Hawkey99
Posts: 568
Joined: 23 Oct 2011, 11:19
Gender: Male

Other options when they close the AVCs ?

Post by Hawkey99 »

Most seem to be of the opinion that the various AVC schemes will when the new pension.

Does anybody have any thoughts or ideas what might take its place.

If there is nothing will we be able to increase our pension payments (accepting that RM won't match after their current amount)

Any thoughts
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Decky Boy
Posts: 440
Joined: 22 May 2009, 10:00
Gender: Male

Other options when they close the AVCs ?

Post by Decky Boy »

One could open an investment ISA or a SIPP with any of the numerous on-line or "real" providers out there. It's possibly a bit too late in the day to be buying bullion...or stacking silver ??? Personally I'm optimistic that the AVC Scheme will remain open :cuppa
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heapsy
Posts: 2949
Joined: 02 Jun 2007, 23:40
Gender: Male
Location: Drinking with Gangsters

Other options when they close the AVCs ?

Post by heapsy »

Decky Boy wrote:One could open an investment ISA or a SIPP with any of the numerous on-line or "real" providers out there. It's possibly a bit too late in the day to be buying bullion...or stacking silver ??? Personally I'm optimistic that the AVC Scheme will remain open :cuppa
Hope you're right Decky. Just in case it doesn't, I've been looking into ISA funds as another option.
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NWpostie
Posts: 3601
Joined: 04 Aug 2007, 17:32
Gender: Male
Location: Sector 001 Borg Collective, 6 o f 9

Other options when they close the AVCs ?

Post by NWpostie »

I did wonder what would happen to our Bonusplan and Flexiplan AVCs once the new CDC scheme comes in as from what I understand our AVC contributions stops.

Would this be done automatically or you get offered something else ?

Otherwise I may have to look at an alternative savings plan.
Six of Nine loves Seven of Nine, together in Electric Dreams.
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RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Other options when they close the AVCs ?

Post by RobertT »

Hawkey99 wrote:Most seem to be of the opinion that the various AVC schemes will when the new pension.

Does anybody have any thoughts or ideas what might take its place.

If there is nothing will we be able to increase our pension payments (accepting that RM won't match after their current amount)

Any thoughts
Logically the current AVCs will stop when CDC is introduced, but what you have in your Bonusplan and Flexiplan will still be used to fund the tax free lump sum when taking your NRA60/65 benefits.

When CDC was first announced, RM said they'd be the option to pay another 1% into the DBLSS which would be matched by the company.

Only time will tell whether that actually happens, but based just on contributions going in, that extra 2% would make the lump sum element in the region of 25% of pot value anyway. So would there be any point in being able to pay more into CDC/DBLSS over and above that extra 2%?

If that's the case, then savings vehicles separate from RM will be the only option. What type will depend on personal circumstances and aims.
Links to all RM pension related websites are here
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