Prudential 'with profits' pension ???

steveyt_2

Hi all... New to all this so bear with me please. I am 48 and have had a Pru 'with profits pension' since I was 18 and an currently paying in £100 a month. It is broke into 2 parts I believe of £32k and £68k (one of which is when I opted out of SERPS). I know with profits funds have had some stick over the last few years but do you experts out there believe it's worth staying with it as the Pru are one of the best in this field or is it worth bailing out into another pension with some financial advise. I am not a gambler when it comes to investments... I like to know where I am but I am a bit unsure what to do.... Thanks in advance....

dunstonh

I know with profits funds have had some stick over the last few years but do you experts out there believe it's worth staying with it as the Pru are one of the best in this field or is it worth bailing out into another pension with some financial advise.

The Pru WP is viable. Dont mix it up with other WP funds. And actually, even some of those so called zombie funds have done quite well. They have a reputation that is not always deserved for performance. Although their data supply and transparency can frustrate at times.

Chances are you can get cheaper nowadays. Many of Prus plans were aligned to a charge of 1% p.a. assuming a growth rate of 7% a year. Your post could get 0.4% easily. Although some pru plans are cheaper (and some more expensive).

I am not a gambler when it comes to investments...

Most investors are not either. Gambling shouldnt come into it.

Mothman

Have you checked if your WP pension contains any bonus or annuity guarantees? Probably best to look in your original contract if you still have it. My experience of phoning the Pru for information on my WP pension has not been that good, but I may have just been unlucky.

dunstonh

My experience of phoning the Pru for information on my WP pension has not been that good, but I may have just been unlucky.

Since they moved to Lancing, their service levels have been poor. However, they do provide a decent policy details summary in writing if you ask for it.... and wait a good few weeks.

parcival

My OH has just had a Prudential With Profits pension mature. It was also in 2 parts with part of it supporting a section 32 transfer from Barclays.


Overall it has done very well. The Pru have taken a massive hit on the S32 part. They say that to support the GMP has cost them over £100k. However they have made no attempt to claw any of this back from the non GMP part of the policy.


I have to agree that the admin on getting all of this sorted and into payment was not great but it is all done now....

steveyt_2

Thanks all.....i will try and dig out the original paperwork....the charges on the pension are at about .8% ....... i just wondered if 'other' pensions not 'with profits' pensions performed any better nowdays as surely the market has moved on in the last 30 years. They tell you to shop around for a cheaper gas supplier and wasnt sure if the same applies to pensions...

dunstonh

i just wondered if 'other' pensions not 'with profits' pensions performed any better nowdays as surely the market has moved on in the last 30 years.

There are around 50,000 pension funds. Some would do better, some worse. However, that is all historic. No-one knows what they will do in the future.

They tell you to shop around for a cheaper gas supplier and wasnt sure if the same applies to pensions...

Cost is secondary to investment selection.

Mothman

Playing devils advocate, you could alternatively take the view that as no-one knows what funds will do in the future then cost should be primary :rotfl:

dunstonh

Mothman wrote: »

Playing devils advocate, you could alternatively take the view that as no-one knows what funds will do in the future then cost should be primary :rotfl:

I thought devils advocate posting was my thing

Lets say the cheapest option was a 100% in something weird and silly. If you put cost first, that would be the best option. However, if you looked at where and how you wanted to invest and then the best way to achieve that you could eliminate weird and silly.

Returns are always unknown but you should know what structure/style you are looking.