reattribution of the inherited estates of with profits sub fund?

panny300

as the title. does anyone have any info(or understand it) on this,it's the prudential that is looking into it. has it been done by any other companys?worth waiting for?any financial gains?

EdInvestor

You might get a windfall eventually, which would usually be based on size of policy and length you've been paying in.But I wouldn't hold my breath.NU has been "negotiating" over this for ages now, to the point that some people think these alleged distribution plans are just a ploy to stop people surrendering or transferring out their policies.

dunstonh

Neither NU or Pru have any issues over surrenders. Both are good providers with decent with profits funds. The poor providers of with profits funds can actually make more money out of a surrender than you keeping it.

So anyone thinking it is a ploy to string it out must be totally paranoid.

Negotiations are taking longer because they cannot get agreement. Its as simple as that.

Newly_retired

I rang the Pru again today to see if there was any news on the re-attribution. There isn't - they said it is taking longer than expected to decide. In any case, if it does happen we won't be getting any money until late 2009.
I am waiting to decide whether to take my AVC fund as an annuity + lump sum. I don't deperately need it for now and I didn't want to miss out on any potential windfall, but now I'm wondering whether it's worth waiting or not.
I suppose the longer I wait( the older I get) the higher my annuity, but meanwhile I am not benefitting from the income. On the other hand, if I get it and put it into savings I will be taxed on them. Any thoughts?

EdInvestor

Hi NR


If you don't really need the income have you considered taking the tax free cash and moving the rest into drawdown in a SIPP without taking an income - leave fund invested to grow until you need it later?

The inexpensive online SIPPs are happy to take comparively small funds.

eg.https://www.h-l.co.uk
https://www.sippdeal.co.uk

chromehorse

EdInvestor wrote: »

Hi NR


If you don't really need the income have you considered taking the tax free cash and moving the rest into drawdown in a SIPP without taking an income - leave fund invested to grow until you need it later?

The inexpensive online SIPPs are happy to take comparively small funds.

eg.www.h-l.co.uk
www.sippdeal.co.uk

I think FSA should tell Pru to get their finger out, appoint Bloxham and set an eligibility date to apply to any re-attribution or NU style pre-reattribution distribution.I have 2 policies maturing in 2009 and they look like being rendered ineligible.

I read somewhere that the special bonus element of final maturity is taxable, but not the rest, is that right?

EdInvestor

chromehorse wrote: »

I read somewhere that the special bonus element of final maturity is taxable, but not the rest, is that right?

Pension funds are not taxable - it's the income you receive when you retire that attracts tax.