Standard Life windfall news

follyfoot

is it possible for me to re-invest my standard life pension in something else? although i am entitled to shares, what will happen to the pension?

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Gorgeous_George wrote:

Does that also explain why 1980's policies have been hit so hard by the cuts in recent years?

When the management messed up by overbonussing, those with more assets accumulated in the WP fund will have suffered most.

If those same investors compare themselves to policyholders who benefitted most from overbonussing ( especially 2000-2002 but it continued after that) they will understandably feel even more aggrieved, even if the recent cuts mean that they are now getting closer to their fair asset share on encashment / maturity.

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follyfoot wrote:

is it possible for me to re-invest my standard life pension in something else? although i am entitled to shares, what will happen to the pension?

After May 31st - assuming members vote for demutualisation - you should be able to transfer funds from the with profits fund without affecting your windfall shares allocation.

Some people on MSE have suggested that Standard may increase penalties / MVRs to keep investors in the WP fund as you won't have been the first to contemplate this course of action.

We will have to wait and see what the situation is in June.

rubber_soul_2

Okay, might asw ell throw-in my bit of info -

£20 per month with profits endowment policy, started July 1999, for ten years.

Shares allocated: 201 (ie the basic allocation of 185 plus an additional 16).

I haven't done the maths, but I think this looks about in line with others that have been quoted so far.

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dazzatheman wrote:

Someone said a while back that no-one has posted on shares allocated as a result of a pension.

Thanks for that snapshot above, dazza.

I assume that your contracted out contributions will have varied over the years, making it difficult to analyse the formula used for the final windfall.

Lady_K

Think whatever I get I'll save for the 12 months for an extra 5% do you think thats wise? Or do you think prices will drop coz so many will then want to sell?

Edna_Bucket_2

Lady_K wrote:

Think whatever I get I'll save for the 12 months for an extra 5% do you think thats wise? Or do you think prices will drop coz so many will then want to sell?

Obviously the "caveat emptor" rule applies (although you haven't bought the shares) in that no-one can predict what will happen to the market as a whole over the next 12 months.

I think management have tried very hard to avoid a repeat of the Friends Provident over-pricing, where after a short rise the share price has remained "under water" virtually most of the time since the float.

In this case there will be a) continued demand from the retail institutions for the shares as they'll need them in their FTSE basket and won't get as many as they would like, and b) continued talk of sector consolidation.

Whatever else the management may do with the business over the next 12 months those factors ought to underpin the price - but clearly that is not "advice" as you'll understand.

mad

Like Dazzatheman I too have a contracted out of serps with profits pension with SL that I have not paid a penny in to. I have had this since about 1988 and as Report investor states contributions will have varies as my salary increased over the years. the fund is worth about 24k now. I 'think' I am pleased with the 919 shares I have been allocated.

One of the questions for me is if I contract back in to the state second pension?

i think I will be taking advantage of any extra shares depending on the discount, anyone know what this is likely to be? I also think I will hold for a while for exactly the reasons Edna Bucket states.

monty100

Here's mine, well ours, but in his name!

Policy for £35,625, paying £52.30 per month. 25 years from May 1988. (horrible shortfall projected in 7 years time of between £10,000 and £15,000). Misselling chased up with Halifax and settlement accepted (though nowhere near enough to make a difference).

Share allocation 732

Will be voting yes, but don't yet know what to do with it since locked in to current mortgate till 2007.

Alikay

Ours is a 25 year policy for £67k started in May 1994 and costs £102.50 per month (joint life). Projected shortfall is now over 20K!! Luckily converted quite a bit of mortgage to repayment a few years ago

Share allocation 487

Haven't bothered to chase up compo for missselling since original paperwork from building society's FA has "Investments can go up or down" or similar smallprint on bottom of printed docs.

Am unsure of how we should vote - and whether to take cash (and pay it off mortgage) or keep shares if flotation happens.