My Dads Pension

JamBon_4

He has had a pension with Scottish Mutual for 22 years and pays a net premium of £1000 per year. He is concerned because he has received no bonus at all for the past four years and the fund is still at it's 2001 level. His pension will have a huge shortfall compared to the original quote, is there anything he can do?

dunstonh

Scottish Mutual are a closed insurance company and its unlikely any bonuses will be paid again. He should investigate a pension transfer to another provider. That said, there may be guarantees built into his plan which could be highly valuable and worth keeping (particulary as you say 22 years which is pre-person pensions and would make it a retirement annuity contract which often have guarantees).

EdInvestor

Almost certainly the pension will have a guaranteed annuity rate.

Do nothing before investigating this.Find out how much the percentage rate is. It could be a lot higher than what he could get for the fund on the market today because rates have come right down.

If his fund is not big enough to cover this guaranteed amount, Scottish Mutual will have to make up the difference

So your father will be the winner.

JoeK_3

See an Independent Financial Adviser.

There are far to many grey areas here.

An IFA will need to ask all the relevant questions, to ascertain whether you should stay or go.

JoeK

JamBon_4

Thanks for the response.. I shall pass the information on to him. :T