Phoenix Life Pension - Late Payment

optimist1

My monthly pension payment from Phoenix is due on the first day of each month. When the first of each month is a not a week day or is a bank holiday, payment is made on the preceding working day.

Having had this pension for eight years, I have experienced one late payment by one day, some three or so years ago. However, my payment due on 01/01/2010 has yet to be credited to my account. On contacting the company, they are unable to advise either precisely why ( technical problems were cited) or more importantly precisely when the overdue payment will be made, beyond "should be" by the end of the week and to phone tomorrow for more details.

Is there anything amiss at this company?

eagleman_100

I have also had exactly the same experience as yourself this morning....having had this pension for eight years.I also am wondering nervously what is going on ...but cannot find out anything more on seaching the internet .Does anyone else know?

dunstonh

Is there anything amiss at this company?

Nothing at all. Financially strong but not great on admin.

Which insurance company were you originally with? Phoenix buy insurance companies and then try to consolidate the administration onto new systems and processing to save costs. If yours is with one of the more recent acquisitions then it could be down to that.

However, it could just be that someone didnt program in the bank holidays for 2009 and they got caught out. If they say it will be in by the end of the week then you should be ok for that.

eagleman_100

Thanks Dunstonh for you comments........I hope I can sleep more peacefully the next few nights. My original pension providers were Brittanic Retirement and they were taken over by Phoenix Life about 2/3 years ago

Lets hope that they (Phoenix )have not got too big for themselves ,so they cannot handle more business. The bigger the better seems no longer applies especially, with Ins Co's & Banks

dunstonh

The bigger the better seems no longer applies especially

Phoenix are rarely ever going to be better (unless you have contract specific guarantees they cant avoid). Phoenix is where all the failing insurance companies end up. They are mostly closed for business already. That said, Phoenix have now got their eyes on the ones that are still open.

UK insurance is not very profitable and unless the insurer is strong outside of the UK, there is little money to be made unless you consolidate the admin the put the company in run down.

eagleman_100

I originally transfered my pension fund from the Equitable mess. Are you able to tell me whether Phoenix guarantees all the pension liabilities from the company it took over (Eg Britt Retire). I always thought that Pension Annuties were ring- fenced, as well as guaranteed by a government body up to 90% .Many thanks for info

dunstonh

FSCS protection exists with annuities as you say.

When i was referring to guarantees, I was talking about guaranteed annuity rates or GMP that are part of the pension contract. Without those, you wouldnt normally buy a Phoenix pension income as the income will not normally be competitive.

EdInvestor

optimist1 wrote: »

Having had this pension for eight years, I have experienced one late payment by one day, some three or so years ago. However, my payment due on 01/01/2010 has yet to be credited to my account. On contacting the company, they are unable to advise either precisely why ( technical problems were cited) or more importantly precisely when the overdue payment will be made, beyond "should be" by the end of the week and to phone tomorrow for more details.

Is there anything amiss at this company?

And I thought annuities were supposed to provide peace of mind.:rolleyes:s

optimist1

Like eagleman 100, I too transferred from Equitable (knowingly sacrificing 10% but expecting peace of mind) to Britannic Retirement, subsequently absorbed by Phoenix over three years ago. Given the further coincidence, like eagleman 100, of this transfer taking place eight years ago, hopefully this is a one-off computer glitch applicable to those who have followed a similar course to similar timing.

However, I am still somewhat concerned, not least as to how simple it must be to make the late payment now, and as to why no date can be given as to when it will be made.

optimist1

I have been advised by Phoenix that all payments due on Dec 30/31 and Jan1 were not made because of a "technical glitch". I have been assured that the overdue monthly payment will be in my account on Friday 8th Jan (one week late). We shall see.

eagleman_100

Thank you for the info Otimist 1. .... I have also emailed the Phoenix requesting confirmation of payment date and asking whether the problem was technical or financial reasons. Also asked the reason for this happenning ,but I don't think I will get an answer. Anyway they stated they did not reply by email for security purposes,but would be writing!! .I think that the majority of annuity recipients are not yet aware of the prolem as they do not have internet bank accounts and only see their statements at the end of the month ..............please keep in touch Eagleman100