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Equitable Life and auto work pension

Kay6759
Posts: 10 Forumite
Could someone help me please. I have just started paying 4% of my salary into my work pension (They are contributing 4% also). I already have an Equitable Life Pension that I currently pay in to that has been going since around 1993, although the last 15 or so years I have only been paying in £20 per month, before that I paid around £70.
How do I find out if it is worth stopping paying into the Equitable Life and instead adding these further contributions to my work pension, if I can do this?
Also, am I able to get the money out of the Equitable Life Pension and put this somewhere else. I am concerned that because of the mess that Equitable Life made with pensions (I recently received a small compensation payment) I am better putting it somewhere else?
Please can someone advise? I am 50 years old if that helps?
How do I find out if it is worth stopping paying into the Equitable Life and instead adding these further contributions to my work pension, if I can do this?
Also, am I able to get the money out of the Equitable Life Pension and put this somewhere else. I am concerned that because of the mess that Equitable Life made with pensions (I recently received a small compensation payment) I am better putting it somewhere else?
Please can someone advise? I am 50 years old if that helps?
0
Comments
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You could transfer your Equitable Life pension to some other provider. You'd need to enquire whether your work pension would be happy to accept a transfer.
You'd also want to know if there would be a penalty for leaving EL, such as a charge or a Market Value Reduction.Free the dunston one next time too.0 -
Also, am I able to get the money out of the Equitable Life Pension and put this somewhere else. I am concerned that because of the mess that Equitable Life made with pensions (I recently received a small compensation payment) I am better putting it somewhere else?
Please can someone advise? I am 50 years old if that helps?- Is it a with-profits pension?
- Does it have a Guaranteed Investment Return (GIR)of 3.5% pa?
- Does it mature when you 60?
Having said that, you might think that 3.5% is not exactly generous.
There is currently a 5% Market Value Adjustment (MVA) deducted on transfer, but there is speculation that this could cease soon. See:
http://www.telegraph.co.uk/finance/personalfinance/pensions/10625581/Equitable-to-distribute-200m-to-policyholders.html
Be careful! Weigh up the benefits of a GIR if you have one. There is a danger of being tempted by a 12.5% boost (currently less 5% MVA) to transfer without understanding the hidden value of a GIR applied at maturity!
WW0
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