Prudential With-Profit pension

sva19

What is people opinions of the Prudential With Profit Pension?

Currently have Pru pension but in Global Equity funds, but the Gloval funds only growed by 36% in 10 yrs, where as with profits 63%?

dunstonh

What is people opinions of the Prudential With Profit Pension?

depends on which version you are talking about. There are some good versions and not so good versions. However, the Pru WP fund is good for what it is. Some versions have different charges and early ones may have guarantees.

The WP fund is geared for someone with a certain risk profile and investment experience and knowledge (i.e. virtually none). People knock With Profits but Pru have made it work.

Aegis

Personally I steer clear of anything "with profits". Effectively you're signing away your right to understand clearly what's going on with your investments. The various bonuses are applied using criteria that you won't be able to fully understand, and you may be penalised for withdrawing your money.

I don't know much about the specifics of the Pru With Profits plan, but I just don't rate the style of investment in general.

Myrmidon_J

Whilst I agree with Aegis (in that 'With Profits' policies are generally lacking in transparency, with poor performance and often high charges), I do think that the Pru represents an exception to the rule.

We have several legacy policies held in SIPPs that have delivered strong and steady returns at low cost. In addition, there's an MVR-free withdrawal of £25,000 p.a. (useful for income drawdown) and, I think, an MVR-free maturity date.

(I could be wrong.)

These policies represent useful core holdings, though we build up more interesting portfolios around them.

If it were my money, I would not consier a new investment. However, there seems little point in surrendering existing policies where alternatives are not likely to outperform!

Of course, past performance is no guarantee of future performance.

dunstonh

If it were my money, I would not consier a new investment. However, there seems little point in surrendering existing policies where alternatives are not likely to outperform!

Thats very much my position. I wouldnt want the Pru WP fund but I have a number of clients with it and they are very happy with it. Advanced portfolios with all the bells and whistles are not for everyone. The Pru WP fund is the simple option for the simple person (if you get what i mean).