Pension assistance//thoughts

simm122

Hi All,
Would appreciate some advice/guidance as advice from SW generally sketchey.

I see SW's defacto rating has been reduced to the lowest rating what does this actually mean?? does anyone know whether this has any impact upon how they manage the actual pension. (have called sw and their customer support team didn't really explain the ramifications, truly think the advisor/s didn't know what it meant)

Albeit I have quite a while to go until I actually draw a pension, I am reading an article that reported even though the goverment has reformed pensions there are some providers that may not comply (scottish widows) is supposedly still one of them i.e. continuing with an annuity or drawdown function only - is this something they can do?? surely reform is reform?

Thanks for your advice
simm122

mgdavid

Cannot comment re SW but in general, the reforms permit certain things to happen, they do not enforce these things to happen. If a provider looks at their business model, development costs, training costs, customer base, etc etc and decides to continue to only offer annuities, that's their choice. The customer is still free to transfer the pension pot elsewhere to a provider that does offer what they want. Some providers will, some wont.

dunstonh

Would appreciate some advice/guidance as advice from SW generally sketchey.

SW dont give advice.

I see SW's defacto rating has been reduced to the lowest rating what does this actually mean?

Depends on which defaqto rating you are referring to. There are many. It can range from features, options and terms to a general opinion of service etc.

does anyone know whether this has any impact upon how they manage the actual pension.

none whatsoever.

truly think the advisor/s didn't know what it meant

They wouldnt be advisers. However, they wouldnt likely know what you are referring to either as its a tool typically used by advisers.

am reading an article that reported even though the goverment has reformed pensions there are some providers that may not comply (scottish widows) is supposedly still one of them i.e. continuing with an annuity or drawdown function only - is this something they can do?? surely reform is reform?

SW do have a drawdown contract and have done for about a decade.

However, it is up to companies to decide what contracts they offer.

surely reform is reform?

And contracts will be able to comply with that. However, it does not mean old ones have to. Although old ones can be moved into new ones.

Some contracts cannot comply with the new legislation due to the way they are set up. There is nothing to force them to do so.

simm122

Thanks for the responses, good to have a clearer picture - Cheers