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AVC - what's your thoughts and experience?

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Has anyone paid in extra to their company pensions via Additional voluntary contributions (AVC) if so so would you recommend doing so?

If I was to pay in extra via the AVC the company I work for would NOT match the contribution so I'm questioning to my self whether it is worth doing as there will be management fees and charges associated with the AVC .


Any help or thoughts please do comment. 

Thank you 

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I opened a SIPP with Vanguard instead. The annual fees are low and I can control the fund(s) the money go into. The slight ball ache is SIPPs only give you 20% tax relief so if you are a 40% tax payer you have to claim the addition 20% from your self assessment which they transfer into your account

Looking for 1981 and 1983-1984 GOLD Ghanaian coins

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Hi Mate

I do think it is worth it if you can afford it.  As mentioned above there are many many funds that fall into 'safe / mild risk / risky'.

Personally, I gave up with an IFA as they chose funds for me that I picked anyway and I paid a premium for it.



Not my circus, not my monkeys

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Look at the annual charges for your work pension vs opening a SIPP. Often work pensions have bulk purchase power so have very low management fees.

I have been self employed 7 years this December and have kept up monthly payments into my last job's pension scheme because the fees are astronomically low compared to other providers. 

Worth checking the criteria so you keep qualifying too, some might not maintain good rates after you leave unless you contribute every month. 

Visit my website for all my Hand Poured Silver: http://backyardbullion.com

And check out my YouTube channel 



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The best thing I ever did was to open a SIPP.
Mine is with Hargreaves Lansdown and I am in full control on-line.
Long time ago SIPPs were for the high earners and had significant fees but not any more.

My pensions from previous jobs were arranged by financial advisors and I had next to no choice in switching funds and everything incurred fees which affected my returns significantly.
I transferred them all into my SIPP and glad I did.

Paying into a pension with spare income means you get full tax relief boosting your contributions.
This might not last forever as the government needs to reign in its tax giveaways in the future.

With the HL SIPP you can buy and sell funds as you please and most no longer have the different prices between buying and selling so you do not get charged for changing your mind or switching funds. That used to be a problem with a bid/offer spread and was definitely a deterrent to switching. Using a broker or IFA inevitably will cost you each time you pick up the phone so take the DIY route. There is so much advice these days on selecting a good mix of funds and I am not convinced the fee charging experts can do a better job than DIY so long as you pick your funds sensibly. That's my experience.

There is nothing to prevent you opening up a SIPP on your own, not connected with the Company pension scheme, and just feed it with cash claiming tax relief as you go or on your annual tax return. You can even open a SIPP for a young child or grandchild literally the day after they are born and if you put £2,880 per annum into their SIPP the government adds £720 to £3,600. Repeat each year and the pot will grown.
That's a 25% gain straight away and you can keep this in cash if you wish but funds would be recommended for long term growth potential.


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As others have said mate, go  the SIPP route. There’s plenty to choose from with low fees. Check out this site for lots of excellent info. https://monevator.com/compare-uk-cheapest-online-brokers/

Much like stacking PM’s, salting monies away into a pension can become addictive what with added tax relief and compound interest. I am well over exposed to PM’s so not buying much lately and concentrating on pension. Only been at it a wee while and built up a nice starting amount. (Should have started much earlier, same old story) 

“Nowadays people know the price of everything and the value of nothing.” Oscillate Wildly

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