Should I switch

By THIS IS MONEY
Updated:

 

I have a civil service occupational pension, based on 1/80th final salary. When I retire in eight years time I will have accumulated 33/80ths rather than the maximum 40/80ths. My current pensionable salary is £30,000. I have an endowment policy which has been ten years into which I pay £90 a month but it will not mature until I am 65. Would it be better for me to switch from the endowment, freezing it at its current value, and pay the money into an added years scheme to buy an increased pension? BC,London.

Jon Briggs of independent financial adviser Chartwell Investment Management, says: Without more details about your position it is hard to say. Both routes are pretty good, but bear in mind that if it is a with-profits endowment you will be better off hanging on to it in order to get the terminal bonuses. What is more, the added years scheme is even less flexible than an endowment - at least with the endowment you will eventually get your hands on the cash and you could use it to buy some kind of flexible tax-efficient investment when the time comes. But are you sure you cannot afford to do both? Then you would have the best of both worlds.

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