Pearl Freedom Bond

tintoys

I have been following the threads about the Bond which was keeping me going with the info, hoping it would be ok in the end. Anyway to cut a long story short, my pension kicks in on 9th December, substantially more than the ifa could get on the open market, so the guarantee has come through. I am to get a lump sum, which is a relief. Interestingly the ifa said that the company would prefer meto leave, they dont like guarantees such as this !

Hope that helps anyone else who's got one, roll on 9th December!

dunstonh

my pension kicks in on 9th December, substantially more than the ifa could get on the open market

That is normal with the Pearl product. They effectively stopped adding bonuses as the plans rarely had any chance of getting close to the guaranteed minimum pension value required.

Are you getting the full 25% or is it reduced? most you see get little or nothing.

Interestingly the ifa said that the company would prefer meto leave, they dont like guarantees such as this !

Yes. Pearl will lose money on this one. If you transfer out, they make a profit.

tintoys

No I am not getting 25% The guarateed pension is £3721 pa and I am getting £7579 lump sum .It is only a single life annuity with a five year guaranteed minimum payment period. The fund value is £59k

So I am guaranteed £15k back in pension and the £7.5 k lump sum, beyond that I don't know what happens

I was worried that they would not pay out until my state pension comes into force in three years time so very relieved.

dunstonh

I was worried that they would not pay out until my state pension comes into force in three years time so very relieved.

pearl go by scheme age and not state pension age. So, you avoid that issue.

tintoys

Thanks for the info.

following good "mse practice" I am planning to pay off the mortgage with most of it, I might allow myself £100 to buy a treat!


Desperately trying to get the mortgage paid off by the time OH retires.

tintoys

Just an update -phoenix (the successors to Pearl) have paid my lump sum in the bank promptly,

My other ones Re being transferred to another provider who have given me a better deal.

So hang on in there, no need to take advice, no one could come close qon the open market to the Freedom Bond.

dunstonh

So hang on in there, no need to take advice, no one could come close qon the open market to the Freedom Bond.

In your case maybe. However, I have seen plenty of Pearl Freedom bonds been transferred over the years because of better alternatives. Just as I have seen ones that are worth keeping. The terms are not consistent with every case and you cannot assume one rule for all.

jjazzza

hi i also have a freedom bond £35,000 in pot i am 55 years old and the poilcy pays a pension to me at 60 yrs do you think they would let me cash in the policy now or take a lump sum now and reduce my pension payments at 60 yrs, but idont retire till im 65 advice anyone, forgot to add that the policy matures when im 60 in 5yrs time