Small Pension Pot halved in value in 2 months - Royal London

andy0829

Hi , just wanted to ask if this sounds normal ?

Received a letter from Royal London in November informing me about a small pension fund that i'd forgotten about , the letter quoted the value as being £949.00 and asked me to contact them in January 2020 (when i'm 60).

I called them a few weeks back and they went through all the stuff with me and was then told the value was - £477.00 ??

I asked her why it had nearly halved in 2 months from the original £949.00 , she informed me she would get the 'team' to look at it as it did sound a bit odd. Anyway , I got the final letter this week to pay it out as a lump sum and the value is still £477.00

Is this normal to be halved in such a small space of time ? i know the value of things go up and down , but it seems like a big drop , imagine how i'd feel if it was originally £60,000 and was now £30,000 ??

thoughts anyone ?

Linton

There may be a fixed annual charge or a fixed charge to release money. The decrease in value is most unlikely to be due to the investments.

Dazed_and_confused

So have they not actually answered your question?

I asked her why it had nearly halved in 2 months from the original £949.00 , she informed me she would get the 'team' to look at it as it did sound a bit odd.

Andrew31

Fixed price charging structure seems most likely although c£500 in 2 months seems weird. You can only get than answer from Royal London, but please update us.

SonOf

What was the current value of the plan?
What was the transfer value of the plan?
Is it a With Profits plan? If so, it could be that there are a market value reduction in place on the plan if taken prior to selected retirement age. Hence why the current value and the transfer value would need to be known.