Waiver Premium stopping me increasing my contributions?

Chief1975

Hi All,

I have a private pension that I set up 10 years ago with Wesleyan, I have never increased the amount I am paying but it has automatically increased inline with average earnings. This year Wesleyan made a £100 cash back offer to its members in return for topping up a existing product or taking out a new one. After reading on MSE that to qualify all you needed to do was increase your pension contribution by £10, I thought that seem a fair deal so called them to verify that it was ok. They confirmed all had to do was to write to them detailing the increase job done.

I have just received a letter from them saying that because my policy has a "Wavier of Premium" incorporated that they would have to create another policy to run alongside the existing one to increase the contribution?
This seems daft to me, extra paper work etc I already have two other pensions taking out through my current / previous employment, do I really need another!
I thought one of the basic components of any pension was to be able to increase contributions as you can afford to but it seems I can't without another policy
Any help or advise would be apprecated, thanks

dunstonh

This seems daft to me, extra paper work etc I already have two other pensions taking out through my current / previous employment, do I really need another!

No surprise and almost certainly the best option (out of the two you are looking at). Pensions today are far cheaper than years ago. The old pension is probably closed for new business and cannot take increments.

The best option is probably to get the pension reviewed independently and see if its worth transferring the old one to a modern, cheaper plan (not all old plans are expensive but many are).

yelf

FYI - wesleyan are pooooooooooooor