Locked into a poor-value investment? It could soon be easier to leave
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If they said it was guaranteed, then it was a lie. Period. I was told similar lies when I was looking round for my first mortgage, luckily for me I knew they were lies and wouldn't touch an endowment with a barge pole. They were a rubbish, inflexible, high charge product and were only sold in such large quantities because they generated large commission to those who sold them.I doubt very much it was a lie. Rather a projection based on what looked reasonable at the time. Rates of return are very much lower now than they were 30 years ago.
You don't need to forsee the future to understand the difference between a guarantee and a projection based on past performance.With one of my company pensions taken out in the 1980s the pension company guaranteed an annual investment return of 8.5%, a guarantee that my colleagues regarded as ridiculously small. So an inability to foresee the future hit both the companies and their customers.0 -
If they said it was guaranteed, then it was a lie. Period. I was told similar lies when I was looking round for my first mortgage, luckily for me I knew they were lies and wouldn't touch an endowment with a barge pole. They were a rubbish, inflexible, high charge product and were only sold in such large quantities because they generated large commission to those who sold them.
You don't need to forsee the future to understand the difference between a guarantee and a projection based on past performance.
Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......0 -
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Words to that effect. Eg "it'll definitely be enough to pay off the mortgage with some over" etc. I don't have any evidence because I didn't record the conversations, I wasn't taken in by their lies so didn't see the need. In those days it was quite hard to buy a repayment mortgage without banks/building societies/brokers treating you like an idiot because you didn't want their wonderful endowments :rotfl:Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......0 -
Money Section, Sunday Times 30th March 2014, page 1
"Cox cites an Allied Dunbar personal pension taken out in 1994, worth £3,399. When the customer wanted to transfer he was offered a pot of just £1,231, indicating a 64% exit penalty."
Allied Dunbar said: "Where the client took out a pension with advice and paid into for only a short period, then the exit charge for leaving ahead of the expected retirement date could be higher to reflect recovery of those costs."
Just the same old zombie fund horror stories.
They stole the money in 1994, to pay the pimp who sold you the dud, to pay for champagne and loose women for themselves. If you have the temerity to ask for your money back, they make any excuse to not pay you: because the money's gone.0 -
Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......
Equitable Life "guaranteed" annuity rates. Bad word to use indeed.
Met somebody who retired in 1993 with an annuity from Equitable Life last year. Lucky !!!!!!!. He probably got 15% (£15k a year for a pot worth £100k), with BOE at 13% in 1993. No need for a guarantee at all.0
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