no bonus

dongilchrist

hi
i have received a letter from the co-op saying
as i have a option 32 policy guaranteed pension
they will not be adding any yearly or final bonus
is there anything i can do about this

dunstonh

is there anything i can do about this

You need to understand why there is no bonus first. Probably because guarantees make the addition of bonuses pointless. You can also investigate transferring it. Although the suitability of that would depend on the levels of guarantees you have.

EdInvestor

The guarantee means that the company has to pay your pension as stated in the original policy document (and possibly revalued upwards over the years) regardless of what your fund is actually worth.So the fact they are not paying bonuses suggests that you are the winner here.

Insurance companies do not usually spell out exactly why they are not paying bonuses.Possibly this is because they hope you will not understand the importance of the guarantee, and lose heart at the apparent lack of performance of your fund, eventually transferring the money elesewhere.

This would mean the insurance company is off the hook - but you have lost your guaranteed pension. Many get caught out.

Do make sure you claim this pension at the right time - do not allow the correct date to slip by, as again they are unlikely to prompt you, and you could lose the guarantee.