Hey
I'm a public servant..I have a preserved pension (18 years) from previous semi state job that kicks in when I'm 60.
At 60 I'll have 24 years with my PS employer.
So if I retire I can only get 24/40 of my possible tax free lump sum.
I'm debating putting about 40k into a last min AVC.
Obviously the tax relief on that would be more than the tax I pay that year so question is do I still get full tax relief. ie put in 40k..get 40k back with pension and claim 40% back in tax the following year?
Also I assume my preserved semi state pension has no impact on any of the above? (I took my lump sum when I left -I took voluntary severance)
Any thoughts would be most welcome...many thanks
I'm a public servant..I have a preserved pension (18 years) from previous semi state job that kicks in when I'm 60.
At 60 I'll have 24 years with my PS employer.
So if I retire I can only get 24/40 of my possible tax free lump sum.
I'm debating putting about 40k into a last min AVC.
Obviously the tax relief on that would be more than the tax I pay that year so question is do I still get full tax relief. ie put in 40k..get 40k back with pension and claim 40% back in tax the following year?
Also I assume my preserved semi state pension has no impact on any of the above? (I took my lump sum when I left -I took voluntary severance)
Any thoughts would be most welcome...many thanks