I have a query that I would appreciate advice on.

I have just resigned from a well paid job, and intend to do a bit of freelance work. I am 55. I was getting almost £800 per month invested into my pension - which will now stop.
My current Pension 'pot' is around £200K
I do have some money in savings - £150K ish, and wonder should I just leave my Pension 'pot' as it is - or maybe put £20K in as an AVC - get the tax relief on this - and hopefully let that appreciate along with the rest - and just maybe get it to £300K by the time I need to use it.

OR - am I better off leaving the £20K in savings

ANy advice appreciated

PAJ

Hi PAJ - obviously it's going to be a lot better to gain specific advice according to your personal circumstances from a professional who has proper details on these.

However, a sort of "back of the envelope" approach would suggest that a pension fund should accrue better than a simple savings account.

On the one hand, you have the tax relief, which really grows your investment to start with.

However, you also have the benefit of the various dividend payments from shares back into your pension fund, with a larger fund more likely to bring in extra dividends.

Of course, I'm not a professional advisor, so my perception may be off cue, which is perhaps all the more reason to seek professional advice form a chartered accountant on the matter. Even if they charge you a couple of hundred for the advice, that should save you thousands in the long term.

Hope that helps.

Thanks Brian...food for thought

Phil