If you take your AVC at the same time you take your main LGPS benefits, you can take up to 100% of your AVC plan as tax-free cash (as long as your total lump sums from the LGPS do not exceed 25% of the combined value of your benefits including your AVC plan, or 25% of the lifetime allowance (£257,500 for the year 2018/19), or 25% of your remaining lifetime allowance if you have previously taken payment of any pension benefits).
If I understand the dteails quoted correctly Bridgelayer it simply means that you can shift some of the 25% allowance from your main pension to your AVC pension allowing you to take up to 100% of it tax free. The tax liability of your main pension however will therefore increase to compensate so the nett effect is zero.
Well worth buying added years. OH didn’t have enough years for the full state pension, bought 2 and will buy the remaining years later. If he lives 4 years after state pension starting, he’s paid back the investment and also increased his state pension to the maximum.
Never did AVCs because it had to be used to buy an annuity & I’m not interested in that because the annuity rates are dire.
Woodman2, it's too late for me to worry about as I'se bin reetired for over 10 years now, but the buggers in DWP don't tell you anything about it. A simple note in your forecasts would help, if not by a lot, a little in your pocket is better off than in BJ's pocket.
(Still a grumpy owd git smiley)
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Topic: Pensions
via mobile 11/8/2020 at 1:49pm
