Is Notional Service worth it?

[Poochie1967]

Hello I am new to this site and a bit green about using them to be fair, my question is in relevance to Notional Service as opposed to AVC's. I am a civil servant since 1998 who has purchased an AVC in the last year but am now quiet worried having seen the recent 'Prime Time' concerning this topic. I will be approximately 4 years short of 40 years service if i retire at 65 years which is my hope. I purchased an AVC about 11 months ago. My 2 questions are is Notional Service a better option than an AVC? and if I decided to opt out of the AVC am I entitled to my money back or could I transfer it to NSP? I have been informed I must keep it there until I retire.

 

[guitarchris]

Hi the main difference is that you buy notional service with your employer. The idea is to make up a shortfall you may have in service when you retire. It has to start on your next birthday and basically you keep paying until you retire (this can be 60 if you are D class or not first employed before 2004 in the public service i.e non new entrant). The thing is it's guaranted and you can get a quote to see if it's worth buying you will be added to both your lump sum and your annual pension amount. Avc are with private companies you can use different levels of risk but check what your money is being invested in (e.g. property at the moment or shares ?)