Pension withdrawal

dunstonh

FIREDreamer said:

dunstonh said:

There isn't a lot of money in there and by the time I get to retirement age the fees would have wiped out the money I invested into the pension 

No they wouldn't.  That is not technically possible for you

I beg to differ here, speaking from experience.

Some old Phoenix unit linked pension policies (the so-called CEB book of business originally administered by Capita) had a monthly policy fee of over £8 increasing with inflation.

Many of these were paid up with fund values under £1,000.

When we produced SMPI projections for these, the fund value at retirement is zero.

Thd policyholders were then recommended to transfer elsewhere, but obviously the onus was on the policyholder to actually do it.

With that OP being 29, there is no possibility of them being able to purchase a pension with the terms typical of the late 80s to early 90s.

The fact they mentioned their age was why I confidently wrote what I did.

FIREDreamer

dunstonh said:

FIREDreamer said:

dunstonh said:

There isn't a lot of money in there and by the time I get to retirement age the fees would have wiped out the money I invested into the pension 

No they wouldn't.  That is not technically possible for you

I beg to differ here, speaking from experience.

Some old Phoenix unit linked pension policies (the so-called CEB book of business originally administered by Capita) had a monthly policy fee of over £8 increasing with inflation.

Many of these were paid up with fund values under £1,000.

When we produced SMPI projections for these, the fund value at retirement is zero.

Thd policyholders were then recommended to transfer elsewhere, but obviously the onus was on the policyholder to actually do it.

With that OP being 29, there is no possibility of them being able to purchase a pension with the terms typical of the late 80s to early 90s.

The fact they mentioned their age was why I confidently wrote what I did.

There were some youngsters in this paid up (group) scheme. That’s why the projected SMPI fund value was zero - £8pm policy fees (inflation linked) just drained the pot to zero in 30-40 years.