Pros and cons of pension options post A-Day

pensions

Since A-Day investors have more options for contributions above their employer schemes, but they need to be aware that these options could be more costly

Up until April 2006, clients who were members of an occupational pension scheme - final salary or money purchase - had just two options if they wanted to contribute over and above what they had to contribute to their employer's scheme - an Additional Voluntary Contribution Scheme (AVC) or an Free Standing AVC (FSAVC). The presumption in most cases was that an AVC was the best option for the vast majority of the clients, but why? Because AVCs and FSAVCs were identical in respect of what clients could pay into them, and when and how they could take the benefits. Thus the choice between the tw...