Prudential AVC for Teachers

Breachwood

The pru have just cut my pension pot to the tune of £5k. The offered explanation is that earlier value estimates are based on final bonus which is not guaranteed. For I've paid in for 23 years and I'm at the point of deciding what to do with the AVC pot but it has suddenly dropped as described. I always understood the final bonus principle but I've never seen such a drop. Their reporting statements in Feb confirm an annual bonus payment but suggest that despite market conditions, final bonus for most will either maintain value or see a small rise. In addition, part of the Pru's marketing of the AVC stresses the 'smoothing effect' so poorer years are balanced against good to produce a steady return. As people will know, the Pru has an appalling record in dealing with customer enquiries/requests and the explanation I've had is no more than a bland, standard statement that final bonus is not guaranteed. 
Has anyone had similar experience? Any advice to offer?

jamjar92

So what gone down the fund value holding or the final bonus value? What is 5K in relation to the pot total value?

The dates you may see the value change, are Feb, May, Aug,Sept on the 25th.

See https://www.pruadviser.co.uk/pdf/PRUF1098101.pdf

Investments can go up and down even with "with profits" funds.  However, I have not noticed a significant drop in my "with profits fund".

dunstonh

The pru have just cut my pension pot to the tune of £5k.

From what?

From £10k that is a massive drop. From £100k then its a small meaningless drop.

For I've paid in for 23 years and I'm at the point of deciding what to do with the AVC pot but it has suddenly dropped as described. 

Values, inc final bonus accrued to date, change on a daily basis. Sometimes up, sometimes down.

I always understood the final bonus principle but I've never seen such a drop. 

Probably as you haven't been looking as over 23 years it would have done it many many times.

As people will know, the Pru has an appalling record in dealing with customer enquiries/requests and the explanation I've had is no more than a bland, standard statement that final bonus is not guaranteed. 

Pru cannot give advice or opinion.  The explanation will be bland.

Has anyone had similar experience?

Virtually everyone who invests.