Closed with profits pension fund – move now or leave?

chris1

Current valuation of an old With Profits pension shows a terminal bonus of almost half of the total value. Unexpected increase in terminal bonus partly due to ‘distribution of part of the fund’s Estate’.

Concerned that the terminal bonus can go down as significantly as it just went up. What should be considered, would you move it now (take the money and run), or wait until the money will actually be needed?
Thanks.

woolly_wombat

Who is the pension provider?

I'm holding on to my Equitable Life with profits pension, which also has a guaranteed investment return of 3.5% pa, until the bitter end. The closure of the WP fund is expected to increase the capital distribution from 35% to 60-70%.
https://www.equitable.co.uk/good-news-for-with-profits-policyholders/

chris1

Thanks for your reply. It's not Equitable Life and the Estate being distributed is only 25% in 2019, up from 16% last year, though presumably the Estate 'pot' gets smaller every year... is that how it works?

woolly_wombat

Who is the provider?