Pension early exit fees to be capped at 1%, regulator confirms

Malthusian

I haven't seen an MVR in years on funds which did not offer a guaranteed growth rate of some kind. (Or possibly guaranteed annuities, but in those cases the provider will usually only quote you a transfer value.) I'd ask your advisor again.

Judwin

Malthusian wrote: »

I haven't seen an MVR in years on funds which did not offer a guaranteed growth rate of some kind. (Or possibly guaranteed annuities, but in those cases the provider will usually only quote you a transfer value.) I'd ask your advisor again.

My Pru WP annual statements have shown MVR's being applied in two recent years; Feb-2012 and Feb-2016.


My Feb-16 MVR is around 3.5% of the total Ex-Non-Protected Rights fund, and 8.5% of the Ex-Protected Rights fund.


The Feb-12 MVR was negative, meaning it was actually a Market Value Increase? No idea how that can happen!


The Feb 13,14 & 15 statements had no MVR's.

lisyloo

Malthusian wrote: »

I haven't seen an MVR in years on funds which did not offer a guaranteed growth rate of some kind. (Or possibly guaranteed annuities, but in those cases the provider will usually only quote you a transfer value.) I'd ask your advisor again.

I don't recall any paperwork or advisor mentioning it over the last 20 years and I do read my correspondence.
I will check it when I get home tomorrow, but I suspect I have the pinnacle of failed with-profits as here, perhaps the explanation is just you haven't seen anything this bad?

http://www.professionaladviser.com/professional-adviser/news/2395579/ifa-publishes-damning-report-on-dreadful-phoenix-with-profits-funds

If you are interested in reading it the google "Phoenix life with profit fund" and follow link from google -which does not require registration.

lisyloo

I do actually like the bit where the author says it's a bit like having a mirror that tells you everything is fine from the front when actually your skirt is tucked in your tights.

Although it's a pretty serious subject, that brought a smile to my face.

lisyloo

Checked and yes the with profits is guaranteed to be not less than 4%.
My advisor has said the ongoing charges are circa 2.1% per annum but I don't know if that applies to the with profits.

Doesn't change anything as I was not transferring anyway but does explain why those who want to transfer would be so heavily penalised.
I think I'm stuck with it till 65.
Right now I feel I wouldn't have taken that pension if I'd know the exit date was inflexible, however I'm not sure I would have realised the significance of that at 22 because the difference between 60 and 65 back then was just a number.
Whereas now it's highly significant.