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Equitable Life and auto work pension

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?

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
  • Kay6759 wrote: »
    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?

    1. Is it a with-profits pension?
    2. Does it have a Guaranteed Investment Return (GIR)of 3.5% pa?
    3. Does it mature when you 60?
    If it has a GIR then that will not be applied until maturity, so it will not be obvious when you look at your statements what the true underlying maturity value would be.

    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!

    WW
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