Would it be sensible to transfer my FSAVC with Clerical Medical to buy in more years with my teacher's pension which is a final salary scheme?
Follow this topic
Q&A » Pensions
Retweet
Comments (
FacebookComments (3)
-
0MuppetKeeper postedI suppose it all depends how much each year costs, and the return you expect to make on your current AVC.
Sounds like a big decision, I'd check with TWO financial advisors if I were you!
Good Luck
MK
Posted on 24 November 2008 |
Love 0 loves
Report
-
1bob1023 posted
Well I am NOT an expert but I did buy years in my NHS pension scheme with my previous pension and thank God (and the Fool) I did.
The first thing to do is find out exactly how many years you will get, and an estimate of how much pension your FSAVC is likely to generate. Then you have to assess your likely career prospects to get some idea of your final salary which will tell you what those extra years will be worth.
You should also take into account the fringe benefits of a Council pension. I assume that it is index linked and has a half pension benefit for your widow. Your FSAVC will be reduced if you want those benefits. The other important consideration is what will happen if you are made redundant. I think that, as with the NHS, your scheme has generous provisions if that happens to an older employee.
I suspect that more years will prove to be a good “Foolish” investment.
Posted on 24 November 2008 | Love 0 loves
Report
-
0jc558 posted
I retired from teaching in 2006. I had an AVC with Friends Provident (recommended by some so- called IFA who came to the school I worked at in the mid 90s.) In retrospect I would have been much better off investing the money in additional years of the teachers' pension scheme even if that had only bought an extra year or two.. There is an AVC linked to TPS (can't remember which - your union should be able to tell you) and that would also have been a better bet. Shift the money into the TPS pronto!
Posted on 26 December 2008 | Love 0 loves
Report
Post an answer
Sign in or register to post an answer.
Something you're dying to ask... or answer?
Register with lovemoney.com to start asking and answering questions on Q&A.
Get started nowSign in for a better Q&A
Registered already? Great! You can just sign in to ask and answer questions.
Sign in