Mvr on prudential pension

matty6962

I have a with profit fund pension with prudential. I want to go into flexi drawdown with vanguard. I elected to take my pension at 60 which was 2 weeks ago. I called prudential today for a valuation to transfer. They have added an mvr of over 5 k saying if I’d transferred before my birthday there wouldn’t have been mvr added. When I looked a few months ago there was no mvr for transfer I also spoke to pru financial adviser who told me if I left it and was not ready no mvr would be added. So because I haven’t taken it yet 2 weeks after my birthday they are now doing this, is it normal?

dunstonh

 So because I haven’t taken it yet 2 weeks after my birthday they are now doing this, is it normal?

The timing of an MVR is to do with market values.    Effectively, if the underlying investments are worth less than your current value or purchase value, you get an MVR applied.  When they are worth more, the MVR is removed.

Usually, there is no MVR charged when you get to the scheme retirement age but it is often a window before it can become chargeable again.  

If there was no MVR before age 60 but there is now, then its just coincidence that your birthday occurred in between.  

Albermarle

Although seems a bit strange that an MVR is being applied at all as most investments have recovered from the Covid dip?
I transferred a SW with profits fund recently ( but when the markets were lower than now ) and no MVR applied and it was a few years earlier than the Normal Retirement age. 

dunstonh

Although seems a bit strange that an MVR is being applied at all as most investments have recovered from the Covid dip?

There is often a lag on the addition and removal of an MVR.  And often they are dealt on specific dates in the quarter rather than a live day by day basis.