Prudential Pension Policy

forzarobur

Hi All
My Prudential Personal Pension matured in Nov 2017 when I was 65. Saved for 32 years @ 500.00 per year. Every year receive a statement telling me how well the with profits fund is doing, and that a final bonus "MAY" be added.
You all know what is coming next !!!
Now I take my pension Pru say there are no final bonuses. Zero.
Anybody else in the same position?

dunstonh

32 year predates personal pensions. So, that makes it likely to be a section 226 RAC. A lot of Pru ones from that period have guaranteed annuity rates (or a variation on it). They also had some no-profit ones which were fully based on an income.

Where there are safeguarded benefits, it is quite normal to see little or nothing in respect of final bonus. The real value is in the guarantees.

forzarobur

Thanks for taking an interest, just wondered how they get away with sending me "good profits reports" year after year (I`m still getting them) when in reality there arn`t any. !!

PeacefulWaters

forzarobur wrote: »

Thanks for taking an interest, just wondered how they get away with sending me "good profits reports" year after year (I`m still getting them) when in reality there arn`t any. !!

I suppose the profit reports are irrelevant.

What are the guarantees you've got?

Muscle750

Ive just took my 25% of my with profits with the Pru and i can safely say the admin side and other aspects of how they treat their customers to me leaves alot to be desired. They paid me compensation for how they mis informed me and i know many others as well.

kidmugsy

forzarobur wrote: »

Thanks for taking an interest, just wondered how they get away with sending me "good profits reports" year after year (I`m still getting them) when in reality there arn`t any. !!

Do you mean that they weren't give you annual bonuses from the profits?

parcival

OH had a Pru With Profits that matured a couple of years ago at her retirement age. It had a GMP and the administration of it was very professional. It had a large Terminal Bonus and they made no attempt to reduce it or impose any Market Value adjustments. we were more than happy with it......

rickdamsay

I have a pru pension taken out 36 years ago has a guaranteed annuity on it would like to know what % is added in final bonus and terminal bonus on this policy

dunstonh

rickdamsay wrote: »

I have a pru pension taken out 36 years ago has a guaranteed annuity on it would like to know what % is added in final bonus and terminal bonus on this policy

It varies as it is based on dates and contract version.

Final bonuses are not added at the end. They accrue and change as they go along and are included in the transfer value (but not the current value). So, look at your transfer value.

Very old S226 retirement annuity contracts can also be set up in different ways which can influence the value. So, you have to look at these on an individual basis.

Sobraon

I have 2 'with profits' pension schemes from the 80's. Very luckily they were a very minor part of my pensions savings. In a similar way to other posters on this thread the annual bonuses were cut to zero for many years and very little termimal bonus. Of course both companies continued to take their management fees.

I read a story in the press a few week ago about someone who is trying to take them 'on'. See this website which may be of interest.

dunstonh

In a similar way to other posters on this thread the annual bonuses were cut to zero for many years and very little termimal bonus. Of course both companies continued to take their management fees.

The annual bonuses were reduced after the regulator increased the solvency requirements following the dot.com period. The returns on most WP funds moved to the final bonuses as it reduced liability.

Where plans had safeguarded benefits, such as GARs or guaranteed minimum maturity values etc then the value was in the guarantees. Not the fund value. So, the bonuses were reduced or even removed on some as they never had a chance of meeting the guarantee.