Pensions miss selling cases?

Thrugelmir

Tight_Fart wrote: »

The fund only shows a value of around £80k now, it’s performed very poorly over the years

A common misconception. The real value of equity investing is by the reinvestment of income. Compounding is your friend. By it's very nature the return is therefore generated towards the latter years of the term. Growth is not the main driver of investment returns.

Tight_Fart

Well Just enquired to make sure, I’ve always been lead to believe that due to a gar of 9.8% the profits would remain low, now I’m told that only relates to part of the policy.
So it’s transfer value today, 1 year before maturing is,
Unit linked £43k
With profits £43k with a 9.8% gar
I estimate that at paying only around £5.5k per annum?
I’d always been lead to believe that it was gar on the whole fund.

kidmugsy

Tight_Fart wrote: »

So it’s transfer value today, 1 year before maturing is,
Unit linked £43k
With profits £43k with a 9.8% gar
I estimate that at paying only around £5.5k per annum?
I’d always been lead to believe that it was gar on the whole fund.

Who led you to believe that? Did they do it in writing?

How do you arrive at £5.5k p.a.?

Tight_Fart

9.8% on £43k plus 3-4% on the other half?