Transferring AVCs to SIPP

[Hawkey99]

Just to report a success story in transferring my 2 AVCs (Bonus Plan & Flexiplan)

I write to Royal Mail Pension Plan on 4th December asking them to send me the paperwork I needed.

I received this one week later.

I sent this to my SIPP holder AJ Bell on 14th December.

They then dealt with everything.

I noticed my funds were divested on 14th January.

3rd February funds arrived in my AJ Bell SIPP.

Job Done.........

[RobertT]

That's good to hear!

I'm in a similar position to you, although a bit younger, and plan to do the same as you when the time comes.
As I've built up a fairly considerable sum in AVC's, I plan to use them to fund the tax free lump sum when taking my NRA60 and then transfer out the remainder, as the DBCBS will fund the lump sum when taking my NRA65.

Transferring out to a SIPP at that stage means 25% of that excess AVC cash will be tax free, with the remainder being taxable, which if I drawdown over a period of time, will be payable at 20%.
But if I keep my AVC's with SW to take with my NRA65, I'll pay 40% tax on some of it.

So overall, transferring out what's in my AVC's between taking my NRA60 and NRA65 is also the better option for me, as it was for you!
It might not be the right decision for everyone!

[fluxburner]

Thx for the report, I too intend doing the same, sounds super simple and quick. One less thing to worry about.