Pension guarantee

i6g6t6

Was looking at the annual pension summary that the Prudential send out annually and when I started the pension in 1987 it states clearly that my pension was guaranteed to be paid for ten years, This has never appeared again on any annual summary until this years in which it now only guarantees the pension will be paid for five years. Does anyone else have a Prudential pension that has the same issues? Their office is closed until Monday, so does anyone know if they can reduce the number of years they guarantee the pension will be paid?

dunstonh

The guarantee applies to the annuity rate and the number of years it would be paid for from commencement of the annuity. You choose the length of guarantee when you crystallise your benefits. You can pick no guarantee, 5 year or 10 year typically.

Projections have been standardised a bit in recent years with 5 years being the guarantee period used. It doesnt mean you have to go with 5 years though. You can go with 10 if you like.

i6g6t6

Cheers that makes it clearer now:cool: