Going over PSE limit

[NWpostie]

A possible grace period of 10 -11 months maybe even 15 months assuming they may want to start it at the tax year April 2022.

It would depend on how quickly and efficiently they can put it together, either way we are running out of time.

[RobertT]

I'm assuming there's already been a certain amount groundwork done in terms of setting the CDC scheme up. But they can't really do anything solid until the Pensions Bill becomes law, which it won't until Royal Assent is given.

Time is indeed running out, so whether you're paying AVC's or are in the DC scheme, I would suggest if you want to up your contributions, do it now while you still can.

[heapsy]

Agreed, I'm waiting for the deal to be rubber stamped. I'll then put another £3 a week in. Not a fortune, but one final boost before they close for good. Btw Robert, if I'm correct, I think you posted somewhere that you stopped paying in to Flexi plan. If that is right, could you tell me, did you Lifestyle the plan, or leave it as per your investment strategy when you were contributing? Many thanks in advance.

[RobertT]

Agreed, I'm waiting for the deal to be rubber stamped. I'll then put another £3 a week in. Not a fortune, but one final boost before they close for good. Btw Robert, if I'm correct, I think you posted somewhere that you stopped paying in to Flexi plan. If that is right, could you tell me, did you Lifestyle the plan, or leave it as per your investment strategy when you were contributing? Many thanks in advance.

Assuming a yes vote then we'll get another 1% increase in April, but there might be an increase in the minimum wage too, which will have to be factored in.

I did stop paying into Flexiplan a while ago due to having more than 25% pot value, and deciding I'd rather put the money into my personal pension to help fund retirement before 60, than accumulate an even bigger AVC pot which I'll just end up paying more tax on at 65.
I have no plans to take any of my benefits before NRA!

It meant forgoing the benefit of PSE, but for me the ability to retire early is very important. Plus I should be able to drawdown the majority of the personal pension tax free.

I was previously invested in just the Growth fund and had been for years, but have since realigned my investments as:

Growth – 30%
Balanced – 40%
Cautious – 30%

I haven't chosen the official lifestyle option because I think it's approach to de-risking is too rigid, but plan to do my own lifestyling as and when I think it's right.

[heapsy]

Cheers for that. As you may have gathered, I'm trying to plan ahead for a post AVC era. Topping up my SIPP and or S&S ISA, with any money that previously would have gone into my AVCs.

[RobertT]

It's always good to plan ahead!

There is the possibility that new AVC's could be attached to the new CDC scheme!?

An extra 1% contribution into the DBLSS, matched by RM, was mentioned back in 2018 when it was first decided that CDC was the way forward.

Any free money off the employer is always worth taking and anyone who's paid into Bonusplan for 10+ years should know how a small amount per week can grow into a healthy sum.

An AVC similar to Flexiplan is a possibility, as is buying extra CDC years. Although personally I can't really see either happening in the short term at least.

Only time will tell if we get any opportunity to save extra via RM pensions going forward. So thinking about alternatives such as SIPP's and ISA's is a good idea!