I have a deferred DB pension with associated AVC fund, additionally I have an entirely separate SIPP. I intend to take the pension from the DB scheme at my normal retirement age of 65 but intend to fund early retirement by drawing down on my SIPP in the intervening years.
I was assuming I could simply transfer my AVC funds into my SIPP without requiring professional advice or jumping through too many hoops. My AVC provides money purchase benefits only so would seem to fall into the "Flexible Benefit" category defined by the pension regulator. I should therefore have a statutory right to transfer my AVC without further ado. I am aware that I would be giving up the possibility of taking my AVC as a PCLS, but this is a trade off I am willing to make.
Can anyone confirm my interpretation of the rules or point out any gotchas I may have missed ?
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Accessing AVC funds early
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- Lemon Slice
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Re: Accessing AVC funds early
Your DB scheme may have rules that preclude exiting the in-scheme AVC in advance of crystallising the main DB scheme. Mine does (NHS). Check with the AVC administrator.
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