Prudential With Profits Pension Transfer Out and MVR
ian.smith7
Posts: 22 Forumite
Has Any one transferred their Prudential with profits pension to another provider and had a Market Value Reduction (MVR) applied to the stated transfer value.
I am thinking of transferring mine into a drawdown with another provider and all the transfer value quotations I have had (2) say the MVR is £0.
But I just wondered what other peoples experience of this process was.
thanks
ian
I am thinking of transferring mine into a drawdown with another provider and all the transfer value quotations I have had (2) say the MVR is £0.
But I just wondered what other peoples experience of this process was.
thanks
ian
0
Comments
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Not prudential but I recently had the same issue with Phoenix. I wanted to transfer out but they wanted to apply an MVR of 4.8% . I held fire to see if this would be lifted and to my surprise it was lifted a fortnight later . We got in quick and transferred with no MVR .0
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How did you find out the MVR was being applied?0
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ian.smith7 wrote: »How did you find out the MVR was being applied?
You ask them or your IFA, if you have one.
However, you appear to have already asked them this and been told its zero (at the point the forms were generated).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You ask them or your IFA, if you have one.
However, you appear to have already asked them this and been told its zero (at the point the forms were generated).
"at the point the forms were generated" is what really concerns me.
How likely is this to change? Particularly if i chose not to remain with the Pru/
Ian0 -
"at the point the forms were generated" is what really concerns me.
That is the best they can do as its a daily decision.How likely is this to change?
Statistically unlikely as it tends to happen after market crashes (which tend to happen only every 3-5 years). However, it could happen this week.
Pru tend to apply an MVR but leave the final bonus untouched unless its a really bad crash or a sustained crash with long recovery.
Remember, if you were in a unit linked fund and a crash occurred, you would lose a good chunk of your value anyway. If you are transferring it to a unit linked fund or risk based direct investment then you are really worrying about nothing here.Particularly if i chose not to remain with the Pru/
Even if you stayed with Pru and changed plan, you would still suffer an MVR if there was one.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for that dunston.
Ian0
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