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Watson Wyatt cautiosly welcomes flexiblity on AVCs

Watson Wyatt welcomes the Inland Revenue&#39s decision to allow flexible payment of additional voluntary contributions, but says it is concerned about the method chosen to implement the changes.


The Revenue has decided that if AVC benefits are to be taken before those of the main scheme, it must be paid in the form of income drawdown.


Watson Wyatt says the Revenue has decided to opt for this route because it allows its check on maximum benefit to be delayed until the main scheme is taken.


But the pension consultants feel that income drawdown is not always the most appropriate option, claiming they maybe unattractive to some because of the financial uncertainties involved.


While it says for others the additional administration required for drawdown may also prove unappealing.

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