Pension worth more transferred

pipmoss

Hi I have a pension with Aviva, when I checked the value the fund it almost doubled if I were to transfer it out. My question is to where would I transfer it in order to double my money.?

Thanks in ady

Albermarle

pipmoss said:

Hi I have a pension with Aviva, when I checked the value the fund it almost doubled if I were to transfer it out. My question is to where would I transfer it in order to double my money.?

Thanks in ady

There will be some reason for this- no such things as free money.

My guess is that it is a With Profits fund, with a large final bonus.
When you check the current value you will see two figures, the value of the fund and the final bonus.
If you add them both together, I would guess it is a similar figure to the Transfer value. 

pipmoss

Hi there is no final bonus on the pension. You are right about it being With Profits fund.

When I spoke to someone at Aviva they said that I need to transfer it to another policy using Origo in order to get the extra money.

I don't know where to transfer it to, a new fund or one of my other existing funds.

Thanks for your help

dunstonh

pipmoss said:

Hi I have a pension with Aviva, when I checked the value the fund it almost doubled if I were to transfer it out. My question is to where would I transfer it in order to double my money.?

Thanks in ady

It sounds like you are in a With Profits fund.

Due to an anomoly on how these work and the required reporting levels,     The final bonus accrued to date is not included in the current value but it is included in the transfer value.

Hi there is no final bonus on the pension. You are right about it being With Profits fund.

If there wasn't a final bonus accrued to date, then the transfer value would equal the current value.   

WP funds accrue a final bonus as you go along.  You don't see it anywhere unless you are an IFA (we get more data than you can see) or compared the transfer value to the current value.   Some call centre staff with certain providers are encouraged not to give the final bonus accrued to date figure out.  Some versions of WP funds over the years are do disclose more info as you go along.    Its older plans from the 90s or earlier where it is less visible.

When I spoke to someone at Aviva they said that I need to transfer it to another policy using Origo in order to get the extra money.

No you don't.  You have either misunderstood or were told duff information.