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Problem with Phoenix lost £600 when I transferred
statex
Posts: 38 Forumite
Have a pension with Phoenix Life. Decided that annuities are crap and I would have to live to be 95 just to get my money back. Decided to transfer to a company that has a drawdown facility. Phoenix do not, the only way to cash in your pension is 25% and the rest in an annuity. Alternatively you can take the lot as cash but then you may go over the 40% tax for the year that you cash in the pension.
If I take an annuity and die after a few years the insurance company get the lot if I take the cash I can invest receive the interest if I die my wife or family will get the cash.If I take £2k per year from the pot I will have enough to last until I am 90 and get all my investment back.
I filled all the forms in phoned Phoenix for a valuation on 27/04/2015
I was advised that it was worth 50k however received a letter
on the 18/05/2015 stating that they have transferred £49,400.
When questioned they said that the investment values change on a daily basis.
How can their investments go down £600 pounds in a few days. I think I am being ripped off.
If I take an annuity and die after a few years the insurance company get the lot if I take the cash I can invest receive the interest if I die my wife or family will get the cash.If I take £2k per year from the pot I will have enough to last until I am 90 and get all my investment back.
I filled all the forms in phoned Phoenix for a valuation on 27/04/2015
I was advised that it was worth 50k however received a letter
on the 18/05/2015 stating that they have transferred £49,400.
When questioned they said that the investment values change on a daily basis.
How can their investments go down £600 pounds in a few days. I think I am being ripped off.
0
Comments
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a few ways.
When you knew you were transferring, did you transfer to cash? If not, you money was in the market and a minor correction may have happened.
There may have been a fee to transfer out? Did you ask if there was?
there may have been an MVA if the investment was 'with profits'?0 -
If I take an annuity and die after a few years the insurance company get the lot.
On the other hand, should you live longer than expected, the insurer has the obligation to continue to pay you the agreed income as long as you live. That's the beauty of an annuity -- a gamble where you can't lose (as long as you're only worried about outliving your capital).I was advised that it was worth 50k however received a letter on the 18/05/2015 stating that they have transferred £49,400.
When questioned they said that the investment values change on a daily basis.
How can their investments go down £600 pounds in a few days. I think I am being ripped off.
You haven't told us what assets the pension-fund was invested in, but a fluctuation of about 1.2% in a few days is not excessive for many investment products.
Warmest regards,
FAThus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
On the 27th April the FTSE closed at 7104
On the 18th May the FTSE closed at 6995
A fall of 1.5%
https://uk.finance.yahoo.com/echarts?s=%5EFTSE#symbol=%5EFTSE;range=1m
Your pension value fell by 1.2% in the same period.
Not an unreasonable amount, your pension investments did better than the FTSE in those 3 weeks. No rip off there.0 -
With respect, do you think you are suitable to do drawdown if you dont understand investments?I think I am being ripped off.If I take an annuity and die after a few years the insurance company get the lot
Why do you think that?
it would depend on what death benefits you choose to have.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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No, the surviving annuitants get it: that's the mutual insurance or "risk pooling" aspect of annuities.
not withstanding the double post, there are annuities that pay a guarantee period of 5-10 years, and those that pay a survivors annuity of 50% or so.
This is factored into the price when you buy it.0 -
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not withstanding the double post, there are annuities that pay a guarantee period of 5-10 years, and those that pay a survivors annuity of 50% or so.
This is factored into the price when you buy it.
The changes in pension legislation also resulted in changes to annuities. The old guarantee period of 10 years maximum was a legal one. That was removed with these changes. You can now get annuities with upto 30 years death benefit. Value protect is back in play too (where any unpaid capital is paid to beneficiary as a lump sum).
Whilst the media focused on fund withdrawal and drawdown, it totally ignored the changes that annuities have had.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Have a pension with Phoenix Life. Decided that annuities are crap and I would have to live to be 95 just to get my money back. Decided to transfer to a company that has a drawdown facility. Phoenix do not, the only way to cash in your pension is 25% and the rest in an annuity. Alternatively you can take the lot as cash but then you may go over the 40% tax for the year that you cash in the pension.
If I take an annuity and die after a few years the insurance company get the lot if I take the cash I can invest receive the interest if I die my wife or family will get the cash.If I take £2k per year from the pot I will have enough to last until I am 90 and get all my investment back.
I filled all the forms in phoned Phoenix for a valuation on 27/04/2015
I was advised that it was worth 50k however received a letter
on the 18/05/2015 stating that they have transferred £49,400.
When questioned they said that the investment values change on a daily basis.
How can their investments go down £600 pounds in a few days. I think I am being ripped off.
On reflection, the weird thing about what you say is this: one the one hand, you're surprised and upset that your pension fund's value has fallen over the course of a few days, implying that you weren't expecting to be exposed to that level of risk, while on the other hand, you're explicitly rejecting the security of income which an annuity would give you, preferring to expose yourself to the riskier option of drawdown.
This seems contradictory, since the two decisions imply significantly differing risk tolerances.
No doubt Daniel Kahneman would explain it all.
Warmest regards,
FAThus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0
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