Pension Planning - AVC & FSAVC

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AVC & FSAVC

It used to be the case that you had to take the benefits of an AVC or FSAVC scheme at the same time you took benefits from your main occupational scheme. However, since 30 June 1999 onwards, benefits can be taken at any age between 50 and 75, regardless of whether you have started to take a pension from your main scheme. You do not have to retire from work to start taking benefits from your AVC or FSAVC schemes.

With an in-house added years AVC scheme, your AVC's automatically increase all benefits from your occupational scheme, including the tax-free cash sum. With an in-house money purchase AVC scheme started before 8 April 1987, you can use your AVC's to increase the tax-free cash from your occupational scheme, provided the lump sum remains within the limits outlined above under 'Occupational pension schemes'. In the case of all FSAVC schemes and in-house money purchase AVC's which you started to pay on or after 8 April 1987, you cannot use the proceeds of the scheme to provide or increase the tax-free sum.

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