prudential with profits statement ?

stronginthesun

ive just had my annual statement from my prudential with profits pension . it currently stands at £108000 total transfer value with bonus ect . im 55 but dont intend taking it until 65 . if i took it now and transfered it to a provider offering drawdown would i get the full 108000 ? also i think by the figures thats its doing ok , with brexit ect ect do you think in 10 years it will be close to 150000 ? i know thats a piece of string question , but what are the downfalls of this pension , or is it a good one ?

Brynsam

stronginthesun wrote: »

ive just had my annual statement from my prudential with profits pension . it currently stands at £108000 total transfer value with bonus ect . im 55 but dont intend taking it until 65 . if i took it now and transfered it to a provider offering drawdown would i get the full 108000 ? What does your statement say?also i think by the figures thats its doing ok , with brexit ect ect do you think in 10 years it will be close to 150000 ? i know thats a piece of string question , Quite. Your guess is as good as anyone's!but what are the downfalls of this pension , or is it a good one ?

What do you mean by 'downfalls' and 'good'? Without knowing more e.g. charges, history of returns etc - it's impossible to comment helpfully.

dunstonh

if i took it now and transfered it to a provider offering drawdown would i get the full 108000 ?

The transfer value will be the value on the day of transfer. They move around daily.

with brexit ect ect do you think in 10 years it will be close to 150000 ?

Crystall ball job. However its nice to think that you can double in 10 years with medium risk or higher. However, the Pru WP fund is probably a bit less than that as its lower risk (they do have different versions over the years which carry different risk levels).

i know thats a piece of string question , but what are the downfalls of this pension , or is it a good one ?

Insufficient information to go on as we do not have access to the pension details to make any analysis. Pru have issued around a 100 a so versions of pensions over the years.

Tardigrade1

Some older with profits policies have market value adjustments that may apply on early withdrawal. If you're in the more modern "PruFund" you should be good, but always worth asking the provider if any fees apply at the point of early withdrawal. Similarly but different mechanism,. some providers also suspend the smoothing mechanism, for large transfers, and your unsmoothed value may be less than your smoothed value. Again, ask about that.



As someone else said, between whenever that statement was valued at and when you make the decision to transfer, the value will change.

stronginthesun

sorry i didnt make it more clearer . statement says . current transfer value 108000 . plan value . 57000 . final bonus 51000 . last couple of years current value has gone up approx 10000 per year . im guessing the plan value is guaranteed the final bonus not ?

OldMusicGuy

stronginthesun wrote: »

sorry i didnt make it more clearer . statement says . current transfer value 108000 . plan value . 57000 . final bonus 51000 . last couple of years current value has gone up approx 10000 per year . im guessing the plan value is guaranteed the final bonus not ?

Nothing is guaranteed. The plan value will be affected by movements in the market and the final bonus depends on how the Pru manages and calculates that. So both elements can vary.

I had an old Standard Life with profits pension that I transferred to my SIPP. Like Tardigrade1 said, the final bonus element was subject to something called a "market value adjustment" which means I might not have got the full bonus when I transferred it. SL would not tell me ahead of the transfer if I would get the full bonus element or not, the only way was to get my SIPP provider to request a transfer at which point SL give the actual amount they would transfer. In my case, I got the full bonus element.