Options for Pearl Freedom Bond

bobelliott

Hi Everyone.
Your advise and help would be appreciated.

My Pearl Freedom Bond which I started in 1990 is now due to start paying benefits April 2012.As a lot of people are aware it did not perform very well but I have just over £21.000.
I will not be retiring next year and will not require the funds until April 2014 so my question is I would like some advise if possible as to where I can put this sum of money as leaving it with the Pearl will be a waste of time.

I have a Stakeholders Pension with Scottish Equitable I could pay a lump sum into this one,or my employers pension scheme,perhaps I could put a lump sum as an AVC into the employers scheme.

I would appreciate your thoughts and recommendations.
Thank you all for your time.
Kind regards.
Bob.

dunstonh

As a lot of people are aware it did not perform very well but I have just over £21.000.

That is because for many years it was realised that it wasnt the value that mattered. It was the guarantees where the real value was.

so my question is I would like some advise if possible as to where I can put this sum of money as leaving it with the Pearl will be a waste of time.

What are the terms of the pension commencement with regards to income and tax free cash?

I have a Stakeholders Pension with Scottish Equitable I could pay a lump sum into this one,or my employers pension scheme,perhaps I could put a lump sum as an AVC into the employers scheme.

If you did that, you would lose the guarantees, if they exist.

bobelliott

Hi There.
Thank you for your reply.
Once the Bond Matures Pearl has advised that there may be an added final bonus.They will quote with regards to an annuity with them,or I can move it if I prefer to another provider.If I want to take a lump sum they will pay this then provide me with an annuity or I can take what is left and obtain an annuity else where.

As I am not retiring until April 2014 I just thought there might be a better option else where.

Thank you once again.
Bob.

dunstonh

Once the Bond Matures Pearl has advised that there may be an added final bonus.

Dont hold your breath. Whilst most of Pearl's WP pensions have little or no annual bonus and factor the returns in the final bonus, where there are guarantees, I wouldn't be hopeful. Even where there may be a final bonus, chances are it wont be enough.

They will quote with regards to an annuity with them,or I can move it if I prefer to another provider.

You cannot Open Market Option a section 32 buy out bond. You can only do a pension transfer (and lose the guarantees in the process - but there may also be positives that outweigh it if the guarantees are weak). That or stay with what Pearl offers you.

For anyone to have an idea of what is best, there are a number of things that would need to be known. Fund value (current and transfer), GMP, GARs, Amount of tax free cash (could be zero or higher than 25%) etc.