Transferring out of Equitable Life -- what to consider

guymo

My wife has a number of pension pots with Equitable Life from a couple of company pensions to which she no longer contributes. I am trying to figure out whether she ought to transfer out or not, but I don't think I understand what the EL pensions (might) provide.

She has two with-profits pots and one unit-linked one. Things that I am not sure about include:

1) Guaranteed benefits. EL literature advises repeatedly that one should be cautious about losing valuable guarantees by transferring out. On my wife's last annual statement, the guaranteed values stated for her with-profits pots are smaller than the transfer value. Does that mean there is nothing to be concerned about?

2) Protected rights. Some of each pot is "protected rights." Am I right in thinking that this part of the fund can now be transferred to another pension without any problems?

3) Guaranteed Investment Return (GIR). How would we tell if doe part of her policy has a GIR? The annual statement does not seem to say. I believe at least some of the pension policy was taken out before July 1996; but that company scheme was wound-up in 2007 and some transferring within EL took place, that I don't understand.

I understand about the 12.5% enhancement for the with-profits fund and the 5% MVA penalty (that I hear may be reduced after this month's board meeting.)

Are there other factors about these pensions that should be considered when thinking about transferring out?

Many thanks!

Guy.

EdGasket

I was with Equitable Life but in Unit-Linked funds, not the with-profits. I transferred out to Standard Life stakeholder at the time but am now with what used to be called Sippdeal as I am happy choosing my own shares/funds.

I can only answer 2) and the answer is Yes, I transferred my protected rights with no issues. I think all contributions are lumped together now anyway.