Understanding my Rentokil Initial pension

DavidMilne

Hi looking for help. My Rentokil Inital Pension was transfered to Pension Insurance Corporation PIC by Rentokil  about 12 months ago. I asked for a value at that time and was given a transfer value of £111k which I was happy with as it was valued at £101k in 2018 by the Rentokil scheme. ƁUT this week PIC have given me a value of only £78k. 

I have rang PIC and received a letter from them confirming the value of £78k. 

I have not drawn anything from the pension and have just over 3 years until I reach 65 the age I can start taking this pension.
What can I do because if my pension keeps losing 20% per year by the time I get my pension it will be worthless.
Please help.

JoeCrystal

What is the name of the fund it is invested in?

dunstonh

Hi looking for help. My Rentokil Inital Pension was transfered to Pension Insurance Corporation PIC by Rentokil  about 12 months ago. I asked for a value at that time and was given a transfer value of £111k which I was happy with as it was valued at £101k in 2018 by the Rentokil scheme. ƁUT this week PIC have given me a value of only £78k. 

Is this a defined benefit scheme or a defined contribution scheme?

DB pensions lost upto half their transfer values during 2022.  However, that doesn't matter as defined benefits are not affected by the transfer value.
DC pensions, are subject to investment returns which go up and down on a daily basis.    Most years are positive but around 1 in 5 (over the long term) are negative. 2022 was a negative year.

What can I do because if my pension keeps losing 20% per year by the time I get my pension it will be worthless.

Why do you think it will keep losing 20% a year?

What are you invested in (if its a DC pension)?

Pension fraud?

You put this in your thread title but nothing in your post.  It is sensible to make your thread title something to do with the content of your post.   At the moment, your title has nothing to do with the content.

Troxy

Fraud is a strong word; what makes you think it is fraud?

is it a defined benefit or defined contribution scheme?

ewaste

You seem to be referring to a deferred Defined Benefit pension that has been bought out by an insurance company. Is this a Defined Benefit scheme? 

If it is a DB scheme you don't seem to understand what the Cash Equivalent Transfer Value (CETV) actually is. In either case there has be no fraud...

Edit:-

https://www.rentokil-initial.com/media/news-releases/news-2018/rto-announcement.aspx

Indeed as suspected it's a misunderstanding on your part regarding the deferred pension rights you have. 

Albermarle

If it is a DB scheme, you have rights to a certain pension income at your Normal Retirement date . This will not have changed, in fact it will probably have gone up a bit due to inflation.

DavidMilne

Many thanks for all your help. I now understand.

Brie

Investments of all sorts are down now compared to even a year back.  I've got shares I meant to sell in Jan 2022 but didn't get round to it.  They are now about 25% lower in value so I'm going to wait til the share price goes back up.  Wait until you're nearer your retirement date and then start monitoring the value of the pension and you might be able to time it to get everything disinvested at a good point.  (hopefully!!)

Albermarle

Brie said:

Investments of all sorts are down now compared to even a year back.  I've got shares I meant to sell in Jan 2022 but didn't get round to it.  They are now about 25% lower in value so I'm going to wait til the share price goes back up.  Wait until you're nearer your retirement date and then start monitoring the value of the pension and you might be able to time it to get everything disinvested at a good point.  (hopefully!!)

It sounds like the OP is talking about  a DB pension, so investment performance is not relevant in that case.

Tommyjw

As a backup to what others are saying. Do look here as a rough guide (uses a sample case) of the changes in CETV values.

https://www.xpsgroup.com/what-we-do/technology-and-trackers/xps-transfer-watch/xps-transfer-value-tracker/ 

E.g. looking around £250k this time last year vs £170k now

Thumbs_Up

I have the same defined benefit scheme as David.  Can someone tell what this means:

“Your estimated lifetime allowance percentage as at 11 June 20** is 5.73%”

 Does this mean my pension is updated every year at 5.73%? I am way off from taking the pension just yet.

Good post’s BTW.