Need some help understanding an old with profits pension

minnie29

Hello, well my new year resolution was to take control of my finances, so dug out some info on an old CIS with profits pension that was used back in the 80's to house contracted out SERPS contributions.
Stupidly I have never really looked at the statements just put them in a box with other bits of paperwork, now I have had a good look at them I am hoping that someone out there can help with my question.

Latest statement was in August 2014

Protected Payments Cash Sum. £7517
Annual bonus attaching after bonus declaration for 2013 . 4812.48
Total guaranteed minimum fund. £12,329.48

However it also gives a figure of 21,568.09 as a policy value if I wanted to transfer,
So can someone explain why the transfer value is higher than policy value. Thanks

xylophone

I have been looking at this - I wonder is it possible that there is a GAR attached to this policy?

minnie29

Thank you for your reply, yes there is however for lots of reasons this is not actually important to me would that be a possible reason ??

minnie29

sorry one more thing it does state somewhere that if I used the transfer then any GAR would be lost (not their words ,mine but means the same thing)

xylophone

See http://www.tddirectinvesting.co.uk/choose-an-account/transferring-to-us/sipp-transfers/
under
Make sure you are aware of pension transfer risks

xylophone

http://www.royallondongroup.co.uk/Documents/Coop/pdf/PP_Product_Guide_MKT2613.pdf

Is this your policy?

minnie29

yes I do believe that is now what it is, To clarify I am intending to take the whole lot as cash in August 2016 but need to be clear which amount I can take. (I did look this document up on line and still made no sense to me)
Thank you for your reply.

minnie29

sorry need to say I did phone the help line which by the way is now royal lo don and the very nice man was as confused as me and he has escalated this to some one higher?? I am supposed to get a phone call on Monday but would still like a bit of info so I don't sound like a complete fool thank you,

xylophone

Do you need to take advice from an IFA who can look at your financial situation/pension provision as a whole?https://www.unbiased.co.uk/

minnie29

possibly that will have to be my next route but I am still wondering if anyone can shed some light on these figures? Thank you for your input,

xylophone

I should think that the transfer value is higher because there are certain guarantees with the policy that RL would have to honour if not transferred?

http://www.telegraph.co.uk/finance/personalfinance/pensions/9937300/The-annuities-that-can-double-your-money.html

You can ask the question of RL when you receive your call back?