Pearl Pension

clickoxford

Hello, This is my first forum question and I hope somebody can help me. I have a personal pension with AMP Pearl which has been running for over 10 years but doesn't seem to be performing very well. I read in a Sunday newspaper that Pearl is now a "zombie" company and are closed to new business. I am 38 years old and very worried - do I move or freeze, or just hope for the best. I contribute £200 per month into the fund which is all I can afford with a young family. What should I do? Please help me.

littlereddevil

My oh is also with the Pearl but only paying £100 a month. I will be interested in the advice given to you

dunstonh

If its a V1 policy (starting with 09 - also known as prosperity) then its crap. Zero bonus for last 6 years, annually increasing charges and Pearl reducing valutions every January.

I have transferred over 500 of these out of Pearl and not seen a good one yet. The V2, V3, V4 are little better (start with 05, 03 and 55)

clickoxford

dunstonh wrote:

If its a V1 policy (starting with 09 - also known as prosperity) then its crap. Zero bonus for last 6 years, annually increasing charges and Pearl reducing valutions every January.

I have transferred over 500 of these out of Pearl and not seen a good one yet. The V2, V3, V4 are little better (start with 05, 03 and 55)

Unfortunately, it is a prosperity plan, starting 09 - but what should I do? Is is easy to transfer and will I lose much? Who is best?

DavidLaGuardia

Get a transfer quote and compare it with the actual value. Even if you get a reduction, at 38 you have time to make up for it in a better plan. it does depend on figures and an IFA could help you out with this.
Irrespecitve of value you should NOT pay anymore into it if you are doing so and you should divert any regular premiums to an alternative company.

EdInvestor

Transferring a pension is easy.

Step one is to ask pearl for a transfer value, so you know how much you've got.

Step two is to decide how you want to invest the money - this will depend on various things like how old you are, your attitude to risk, the size of your fund and the "asset allocation" you fancy. Should it be invested more into equities- and if so what kind? Or more into lower risk assets like commercial property or bonds/cash?

Then the question is, which are the best funds in the areas you fancy.

Once you've decided on what funds you want, then you can look at the pension company that offers them at the cheapest price ( eg 1% or less).

Then you just write to the new company and open an account, fill in and return the forms, etc. Then inform Pearl you want to trsanfer the money and the details of the new account where to send it.

Much the same as moving bank accounts really - easier in some ways as no standing orders, direct debits etc.

dunstonh

Pearl V1 pensions use SMPI basis for illustrations. This makes it hard for an individual to compare to modern pensions as only a couple of other providers uses SMPI. The rest use monetary growth basis.

On face value you can expect to lose thousands of pounds initially in a transfer penalty. However, that shouldnt put you off. In real terms, staying with Pearl is costing you money. You get annual increases on their charges which are now more than double what they were in 1991. This will continue to happen until retirement as the increase is an automatic contract event. This means that if you werent paying any money into it, you would be watching the value drop. When I get projections to compare from Pearl, I always ask for paid up projections as well as ongoing. They are one of the few companies where you see the fund value at retirement lower than what it is currently.

Also, like the last couple of years, most V1s have had their values drop anyway as Pearl remove the hidden terminal bonus from the plan.

Is is easy to transfer and will I lose much? Who is best?

Yes it is easy to transfer. How much you will lose initally will depend on your plan. However, projection differences on modern plans often show improvements over tens of thousands of pounds better by retirement. One step back to take two forward.

Who is best depends on what you are looking for. Different providers have different funds, charges and options. However, it is fair to say that any current pension is better than Pearl.

ReportInvestor

clickoxford wrote:

I have a personal pension with AMP Pearl

Welcome to the site co . I wish your first post had been different, but that is life.

Please accept my sincere commiserations for your predicament .

This link contains much information and expert comment on AMP Pearl

ReportInvestor

Mail - Who'd have a Pearl pension?

You'd must stop contributions into this fund.

Blimey. I don't think I've ever made such a clear statement on this forum.

clickoxford

ReportInvestor wrote:

Mail - Who'd have a Pearl pension?

You'd must stop contributions into this fund.

Blimey. I don't think I've ever made such a clear statement on this forum.

I think that's clear enough for me. Thanks. :j

Pal

Duplicate threads merged.


I do hope that no-one on this thread is providing advice on an FSA regulated investment product.