Prudential Pension Waiver

BrianH_3

Hi,
This is the first time I have ever done this so I hope it all goes OK.

I have a couple of personal pension plans with the Pru.
A couple of months ago I phoned them to ask why the one I was paying £180 per month was such a dismal return to the fund.

The reply was that £80 of it was a "waiver" and not part of the fund!!
When I asked what is a waiver, I was told it is for protection if for some reason you become unable to pay the £100 pension part.


So I take it that this is a PPI type of policy, my points here are is this common, is it legal, can I get this money refunded?.

When you look at it £80 to cover £100 is nonsense, it would be like paying £16000 per year to insure a £20000 car or £160000 to insure a £200000 house.

Any help or advice would be much appreciated.

Cheers BrianH

di3004

BrianH wrote: »

Hi,
This is the first time I have ever done this so I hope it all goes OK.

I have a couple of personal pension plans with the Pru.
A couple of months ago I phoned them to ask why the one I was paying £180 per month was such a dismal return to the fund.

The reply was that £80 of it was a "waiver" and not part of the fund!!
When I asked what is a waiver, I was told it is for protection if for some reason you become unable to pay the £100 pension part.


So I take it that this is a PPI type of policy, my points here are is this common, is it legal, can I get this money refunded?.

When you look at it £80 to cover £100 is nonsense, it would be like paying £16000 per year to insure a £20000 car or £160000 to insure a £200000 house.

Any help or advice would be much appreciated.

Cheers BrianH

Hi Brian and welcome.;)

Am bumping this up for you, I'm sure someone on here will know how this works in regards of this being a pension plan/ppi policy.
Hopefully Dunstonh will be along shortly with answers for you on this.

Good luck with this.

Di

dunstonh

o I take it that this is a PPI type of policy, my points here are is this common, is it legal, can I get this money refunded?.

It used to be very common but not so much nowadays. Older plans could get tax relief on the waiver of contribution but modern ones cant.

It is legal and if you bought under advice, it will be documented that you agreed to it and it would have been included in the illustrations at the time.

When you look at it £80 to cover £100 is nonsense

That does seem very high. Normally its a few pounds, sometimes just creeping into double digits. £80 as a round figure doesnt sound right either. Of course, there will be some round figures but the chances of it being exactly £80 and the amount so high as well, suggests the figure isnt right.

As for claiming it back, unlike most PPI complaints you see here, this is a regulated product sold under a regulated advice process. Even today, you still put down on the suitability letter whether the person has chosen to include or not and if not, why they havent.

As its done by a financial adviser and documented then the chance of a complaint being successful is unlikely. The only reason you see other PPIs being successful is they are not done by financial advisers and not documented.

However, I suggest you get the figure verified as to why its so high as that doesnt seem right. Pru can issue a pension details pack to an IFA that breaks down the pension contribution into what its being paid for.

di3004

Thank you Dunstonh.;)

Rosemarywbb

I have just received a letter from Pru saying my Payment Protection is to end in August I did not know I had it so called them to enquire they told me it wasnt payment protection it was a waiver policy in case I could not cover payments even though I had taken out life cover in case anything did happen over the years I could not get any sense out of the young lady I spoke to so I thought perhaps if any one else had the same letter they may be able to assist

Thanks

dunstonh

Rosemarywbb wrote: »

I have just received a letter from Pru saying my Payment Protection is to end in August I did not know I had it so called them to enquire they told me it wasnt payment protection it was a waiver policy in case I could not cover payments even though I had taken out life cover in case anything did happen over the years I could not get any sense out of the young lady I spoke to so I thought perhaps if any one else had the same letter they may be able to assist

Thanks

It is not PPI. It does not suffer the same issues as PPI and is still considered best advice to have it. Although you dont see it much nowadays on new business.