Aegon Trustee Proposed Section 32 Buyout Policy - Fund Name WP Endowment (A)

DRS1

No GMP. That is interesting - what made you think there was one originally? Has something happened to it or was it just that you saw some generic language which didn't actually apply to you?

These policies are buy outs from occupational pension schemes. Not all occupational pension schemes had GMPs in them. Do you remember if yours did?

If there is no GMP then that makes it much more likely you will be able to benefit from any enhanced lump sum this policy may provide. If you have other pensions which also give you a tax free lump sum you may need to think about the order in which you take them - if for example you are going to bump into the Lump Sum Allowance.

Bonus. With a typical with profits policy you can get two sorts of bonus. One is an annual bonus which can't be taken away and is usually at a low rate. And the other is a final bonus which is not guaranteed but may be much larger. Sometimes they will tell you how much the final bonus will be but then mention something called a market value reduction which allows them to claw back an amount depending on how investments are doing at the point you take your benefits. Usually they say they will not apply the MVR at your selected retirement date.

Maybe your policy operates a little differently though if it guarantees a £1 value at 60 (for a unit currently worth 71p) and doesn't specify a final bonus. 71p growing to £1 over 6 years sounds much more than a normal annual bonus so maybe that is how they show the final bonus???