I have been led to believe that with AVC's you must purchase an annuity and that no part can be paid lump sum. with the recent record of annuities I have recently been advised to steer clear however this decision was also based on my age so it is advisable to get proffessional advise. If you have a lump sum of 20k to invest at present I do suggest that you invest them in premium bonds, at present low interest rates do not promote savings as such and bonds and shares in general are not performing well. <img src="confused.gif" border="0">