What about circumstances where it is wrong?
The 31 year old in question has cash reserves and is throwing off a lot of spare cash.
Advising him not to make AVCs is appalling advice...deliquent stuff. No wonder there's a pensions crisis when people in the OP's circumstances are being steered away from AVCs.
I have never heard such rubbish.
But I agree; the thread should be locked. I have no interest in Sarenco's continuing vendetta against me.
It's a discussion forum just give your opinion and move on let the OP decide what's the best , criticising others that post opposing views is counter productive .
You have posted an optimum strategy for his cash but it may turn out incorrect in the future we don't know , maybe he saves up this cash - a housing crash comes and he can buy cheap , maybe he saves this cash and needs medical expenses in a foreign country etc . , maybe he just doesn't want to put that much in an AVC till retirement age .
I know people who don't care much for retirement they spend all there money now and enjoy it , they have no interest in what will happen at retirement age , they are probably right , maxing out AVC's is not for everyone.
It is good to get opposing views here otherwise the site would have a section that says max out AVC's with free cash and that's it nobody should even ask a question or else they be shot down.
If your maxing out your AVC's now at such a young age aren't you negating the tax relief as your going to pay tax at high rate when you draw it down ? I'm in 30's and don't max out AVC's you can tell me I'm wrong but I'm happy to have cash in reserves so I can take opportunities that come up like a housing crash etc. It's hard to put a value on oppurtunity cost imo.
I think Sarenco's advice was very sound, it's not like he's advising something controversial like sticking it all on one blue chip company stock, your been grossly unfair to him.