Scottish Amicable/Pru with profits

srcandas

Can anyone give me a clue what I might hope for terminal bonuswise?

My 'conventional with profits' started back in 1985. Payments into it have at times been iratic, for odd times of hardship non existent.

But nonetheless it now has about £68000 in it.

There is the possibilty of a terminal bonus. Now I know it might be £0, and I appreciate they don't mention it in case it is £0, but on what basis can I dream what it might be?

Is it based on the final value?
Will erratic input impact it?
Might it be a nice surprise?

Any clue, and yes I'll continue planning for zero, would be o so welcome.

Cheers :beer:

dunstonh

Can anyone give me a clue what I might hope for terminal bonuswise?

Pru can. They accrue it as you go along and it has a running value.

srcandas

Tx dunston that's interesting. But if it is accruing why do they hide it?

And presumably it can't go down to zero if it has accumulated over 25 years. I appreciate they can adjust it based on smoothing or a lack of after dinner port in the boardroom

I'll rattle them tomorrow and try again to get them to offer something although I have seen others complaining they didn't know until the cheque turned up. Pity I'm not with L&G as they seem to offer their clients an on-line calculator

:beer:

dunstonh

But if it is accruing why do they hide it?

Historically, these plans were pre-computer age and people didnt care. Now they can supply it but there is no point changing computer software on plans that are coming to the end of their life. They do make it available and visible on the IFA valuation sites. I dont know what the consumer valuation site shows.

Rob_192

Scandras

I have one of these policies also and have just checked my latest statement. The summary states:-

Current transfer value: £abc
(Final bonus included: £xyz)

Is the final bonus value not the terminal bonus to which you refer? I rather assumed it was.

I am in two minds whether to transfer this pension into my Sipp, but it has actually done reasonably well over the years and I treat it as a fall back in case my other provisions fail. The only thing that does concern me is that my FA tells me Pru are have rather a lot invested in cash and less in equities for his liking - I've no idea where one finds this information, any ideas? (this was only a passing comment from my FA who I don't use regularly - in fact I was only speaking to him to let his know out of courtesy that I was transfering another pension which he set up for me, into my sipp)

R

srcandas

Rob_192 wrote: »

Scandras

I have one of these policies also and have just checked my latest statement. The summary states:-

Current transfer value: £abc
(Final bonus included: £xyz)

Is the final bonus value not the terminal bonus to which you refer? I rather assumed it was.

I am in two minds whether to transfer this pension into my Sipp, but it has actually done reasonably well over the years and I treat it as a fall back in case my other provisions fail. The only thing that does concern me is that my FA tells me Pru are have rather a lot invested in cash and less in equities for his liking - I've no idea where one finds this information, any ideas? (this was only a passing comment from my FA who I don't use regularly - in fact I was only speaking to him to let his know out of courtesy that I was transfering another pension which he set up for me, into my sipp)

Rob almost identical to my position but as the Scottish Amicable has a guaranteed 9.3% annuity rate it certainly will become an annuity and be my base fixed pension (along with the state pension of course).

No mention of final bonus on any statements. Just declared bonus.

Certainly the Pru documentation rattles on about a very defensive investment strategy and how they softened the impact of the crisis. But for sure compared to my Aegon it has recently been rather poor. But that of course would all change if there was a fat terminal bonus

srcandas

Well progress. I hope this is helpful to others.

The Pru this time gave me the total fund values (I have two policies although one is 10% of the other so I'll just talk about the big one). On previous occassions they have sent the current benefits/transfer value by post and I had remained just as baffled.

But my fund has a value of £59250 and a terminal bonus of £10652 making £69902 in total.

Previous reported total benefits were

28/03/2012 £59250
31/12/2010 £58238
31/12/2009 £57875

Each year I pay in gross £800

Looking at this it is a no brainer to jump ship at 60 years old and not wait 3 additional more years. The annuity rate is fixed so I'll get little more pension if I wait. If I take it earlier even with tax I will have £17500 in the bank in three years.

I guess if it wasn't for the annuity guarantee I'd feel I'd badly missed out here. I paid in quite heavily in the early days. But 9.3% as opposed to 5.5% is a considerable bonus

Rob_192

Srcandas

Interesting about the guaranteed anuity rate. I took my policy out with Scot Am in about 87/88, I'll check tonight, but I wasn't aware of any guarantees. I have about £78k in mine, but haven't paid into it for several years, might be worth restarting contributions? I obviously need to get reading those policy documents.

R

srcandas

Rob

My payments have been erratic over many years. Every now and again they wrote and asked me to pay missing contributions but I didn't. But that seems to have had no impact on the fund. The growth when I payed in regularly shows no greater growth than when I didn't.

The fact a guaranteed annuity exists is clearly stated on my letter each year and that it would be lost if I transferred but of course you need to ask.

As for paying in again based on the growth I am seeing I wouldn't bother. Also I recently asked if I could increase the monthly payment or pay in a lump sum and they said 'No'. In 2010 I did pay in a lump sum so either that is a plan change or being 59 (within one year of the plan's retirement date) has triggered some condition.

But good luck with it and do let us know how you get on :beer:

Rob_192

Srcandas

Just checked it out and it appears the guaranteed annuity only applied to the Flexipension (series 1). I have a mixture of Ex With Profits 2, 3A, 5 and A. There's no mention of Guaranteed Annuity, so looks like I'm in a different position to you and since I'm only 48 and have another 12 years to grow this money, it may have to go into my SIPP (hoping to retire at 60).

Regards

R

srcandas

Rob_192 wrote: »

Srcandas

Just checked it out and it appears the guaranteed annuity only applied to the Flexipension (series 1).

That's what I have Rob. Sorry you don't but hopefully you'll win others.

But presumably you will have an end bonus accumulating?

Just one thought: when you paid in were your payments gross and did you reclaim the tax on your tax return, or did you pay net?

ps C'mon Barcelona
:beer: