PRU Pension

DE_612183

My wife took out a pension many years ago when she was still working ( think it was sort of opting out? ).

Anyway, she stopped work about 20 years ago, and we thought there was very little in her pension, however I've just looked at the following statement.

Plan Value - 16k
Final Bonus - 20k
Transfer Value - 36k

So that looks good.

However:
Plan value 2021 £36109
Plan Value 2022 £36187

So the plan has only made £70 in a year.

There is also a "charges and costs" of £466 - so I guess the plan actually made £530 but most of that was eaten up by management fees.

She also has a nest pension - would she be better off transferring the value to that, because even with about £3k in there it still made a few hundred last year.

Any advice very welcome!

Albermarle

If you read through this forum in recent days, you will see plenty of threads starting with ' my pension has lost 12% so far this year etc'
If you look at the last 12 months, most pension pots will be down a bit, so the fact hers has stayed the same is OK, considering the wider financial and economic situation.
Her Nest pension may have made a few hundred last year, but it will almost certainly lost a similar amount so far this year.

Marcon

Dave46049 said:

My wife took out a pension many years ago when she was still working ( think it was sort of opting out? ).

Anyway, she stopped work about 20 years ago, and we thought there was very little in her pension, however I've just looked at the following statement.

Plan Value - 16k
Final Bonus - 20k
Transfer Value - 36k

So that looks good.

However:
Plan value 2021 £36109
Plan Value 2022 £36187

So the plan has only made £70 in a year.

There is also a "charges and costs" of £466 - so I guess the plan actually made £530 but most of that was eaten up by management fees.

She also has a nest pension - would she be better off transferring the value to that, because even with about £3k in there it still made a few hundred last year.

Any advice very welcome!

In which Pru funds is she invested? Doesn't sound as if she has done any active management/making choices/reviewing since she started the plan many years ago, so that might be a good starting point.

Farside71

I assume the plan may still be in the with profits fund which would explain why it's not fallen with the market.

dunstonh

She also has a nest pension - would she be better off transferring the value to that, because even with about £3k in there it still made a few hundred last year.

2021 was a good year.  2022 has had a poor start.  Unless you are comparing the same dates, any comparison you make would lead to an incorrect decision.  i.e. Comparing Pru with March 2021-2022 vs the workplace one 1st Jan to 31st Dec would be wrong.

DE_612183

Farside71 said:

I assume the plan may still be in the with profits fund which would explain why it's not fallen with the market.

Yes, it's in the with profits fund

Troytempest

Yes, but does it have any guarantees. Mrs Tempest had a former Barclays pension transferred to the Pru with profits fund donkeys years ago. It had a GMP that far exceeded the fund value....

DE_612183

Troytempest said:

Yes, but does it have any guarantees. Mrs Tempest had a former Barclays pension transferred to the Pru with profits fund donkeys years ago. It had a GMP that far exceeded the fund value....

GMP - not sure what that is?

Troytempest

It's a Guaranteed minimum pension amount regardless of the value of the fund.

DE_612183

the statement makes no mention of a GMP...

xylophone

My wife took out a pension many years ago when she was still working ( think it was sort of opting out? ).

See

https://www.which.co.uk/money/pensions-and-retirement/state-pension/what-was-contracting-out-a581c3l1kqf4

From what you have said it would seem likely that your wife chose to "contract out" of SERPS into a personal pension.

Has your wife obtained a state pension forecast?

https://www.which.co.uk/money/pensions-and-retirement/state-pension/what-was-contracting-out-a581c3l1kqf4

Is a COPE shown?