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Pearl pension

I have a couple of pearl pensions, which are languising with no bonuses, I had a letter last July saying there may be some extra funds shared out but nothing seems forthcoming, I'm now 54, what are your views on me taking out 25% which I think I'm allowed when I'm 55?

Comments

  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Probably better posted in the pensions section (mod will probably move it).

    Pearl had a much smaller orphan assets pot as AMP gobbled it up years ago (leading to the joke that AMP used Pearl's money to buy Pearl as the amounts were about the same).

    They are adding a tiny amount on to the values of the with profits pensions but the amount is so small its not worth bothering about. Especially when you consider that the V1s are on zero bonus and the V2s and V3s are on a lower bonus rate than the annual management charge. (V1s still getting contributions are losing about 5% a year due to massive charges). Their Retirement annuity contracts are often worth keeping though. About 2/3rds have guaranteed annuity rates. These kick in at age 60 and then increase in 5 year intervals. You either take them at 60 or 65 or 70 or 75. No point waiting for age 62 for example as the rate doesnt increase and the bonus is virtually zero.
    I'm now 54, what are your views on me taking out 25% which I think I'm allowed when I'm 55?

    If it has GARs, then you would lose a lot of money by doing this. Plus, you cannot do it with Pearl so you would need to transfer the pension to a provider that allows it. Pearl typically charge a transfer penalty before age 60 on most of the plans. That transfer penalty isnt a problem if you want to get it into a better provider who is making money (one step back to take two forward - or more often twenty forward given the state of pearl pensions).

    Oh, its age 50. It doesnt become 55 until 2010.
    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.
  • Crabman
    Crabman Posts: 9,943 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    No probs, moved to Pensions :)
    Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].
    Crabman :beer:
  • tintoys
    tintoys Posts: 336 Forumite
    Thanks for the advice (actually it sounds even more complicated, but at least I can show H what you,ve told me and we can go through it together).

    Thanks for taking the time to help.
  • dunstonh
    dunstonh Posts: 118,550 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Easy way to look at pearl pensions is look at the statements. Pearl have 4 personal pensions. V1 (prosperity), V2, V3 and V4. All of those are rubbish. Pre 1988 contracts are called retirement annuity contracts and about 2/3rds of those are worth keeping running as they have guarnateed annuity rates (some even had a guaranteed minimum fund value. Pearl also offered a section 32 buy out bond called a freedom bond. These typically had guaranteed minimum pensions and guaranteed annuity rates and despite the growth on them being next to nothing, they are usually worth keeping because of the guarantees.

    So, a rough rule of thumb is V1 to V4 are not worth keeping,
    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.
  • tintoys
    tintoys Posts: 336 Forumite
    That's what I've got -it's about the only thing I understand the title!!!

    I did get extra added as a reult of complaining of misselling as I was talked into leaving the local govt pension. So it seemss I should keep that going and get rid of the other ones.

    thanks again for your help.
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