Hi everybody.
Apologies if this has been asked before but I am working in the Civil Service and am considering taking early retirement next year on my 53rd birthday. I used the cost neutral early retirement modeller and based on my current salary of 61,500 approx. I would get a tax free lump sum of 66,000 plus an annual pension of 17900. I am wondering if there is a way of putting a lump sum of money into a AVC before the end of this tax year to make up the difference between what I would get as a lump sum at 40 years service (61,500 x 1.50) 92,250 and the 66,000 I would get if I retire at 53.
If I have my figures correct and borrowed the 26,250 to buy an AVC it would only actually cost me 15,750 with the tax relief so I could potentially have a lump sum payment of 66,000 + (26,250 - 15750) which would give me approx 76,500. Am I correct and if so what would be the best AVC to do this with.
Thanks
Apologies if this has been asked before but I am working in the Civil Service and am considering taking early retirement next year on my 53rd birthday. I used the cost neutral early retirement modeller and based on my current salary of 61,500 approx. I would get a tax free lump sum of 66,000 plus an annual pension of 17900. I am wondering if there is a way of putting a lump sum of money into a AVC before the end of this tax year to make up the difference between what I would get as a lump sum at 40 years service (61,500 x 1.50) 92,250 and the 66,000 I would get if I retire at 53.
If I have my figures correct and borrowed the 26,250 to buy an AVC it would only actually cost me 15,750 with the tax relief so I could potentially have a lump sum payment of 66,000 + (26,250 - 15750) which would give me approx 76,500. Am I correct and if so what would be the best AVC to do this with.
Thanks