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  • FIRST POST
    • Sarries1968
    • By Sarries1968 12th Jan 18, 1:31 PM
    • 5Posts
    • 0Thanks
    Sarries1968
    Zurich Plan (former Allied Dunbar)
    • #1
    • 12th Jan 18, 1:31 PM
    Zurich Plan (former Allied Dunbar) 12th Jan 18 at 1:31 PM
    Dear All


    I am hoping for a little advice to help me understand my annual review of a former Allied Dunbar plan now being operated by Zurich.


    The statement I got today says that I have the following:


    Managed AP 100%
    SEDOL
    0406181 Managed AP 332.47 units
    0406200 Managed Capital AP 296.15 units
    And that the current value of this is £53,836


    But it also says that this Excludes 'Former Protected Rights Benefits'


    Then the annual review states 'Former Protected Rights Benefits Only'


    SEDOL
    0406181 Managed AP 668.55 units
    Total Current Value is £92,298


    I no longer contribute to this pension as I have a work pension however I am 50 and was planning to take what is available when I am 55 to pay off whatever is left on my mortgage.


    However - I have no idea what the above tells me and what it is likely to be worth in 5 years time??


    I'd really appreciate some 'basic' advice on what it is likely to be worth when I am 55??


    Thanks
Page 1
    • dunstonh
    • By dunstonh 12th Jan 18, 3:02 PM
    • 93,058 Posts
    • 60,448 Thanks
    dunstonh
    • #2
    • 12th Jan 18, 3:02 PM
    • #2
    • 12th Jan 18, 3:02 PM
    I no longer contribute to this pension as I have a work pension however I am 50 and was planning to take what is available when I am 55 to pay off whatever is left on my mortgage.
    That is not normally a good thing today. Most pension funds of medium risk or higher have returns in excess of the mortgage rate you are paying.

    However - I have no idea what the above tells me and what it is likely to be worth in 5 years time??
    No-one can tell you that for sure. You can ballpark it on long term averages but returns dont appear like that in real life. You could get a 15% growth next year. A 20% loss the following year, a 25% gain the following year, a 2% gain, then -4% loss.

    Short term can zig zag all over the place. It generally takes an economic cycle to get you close to the long term average. An economic cycle is around 10 years.
    I'd really appreciate some 'basic' advice on what it is likely to be worth when I am 55??
    I think it is more important to actually consider whether the actual transaction is a good idea or not. Rather than a hypothetical amount you cannot predict.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Sarries1968
    • By Sarries1968 12th Jan 18, 6:36 PM
    • 5 Posts
    • 0 Thanks
    Sarries1968
    • #3
    • 12th Jan 18, 6:36 PM
    • #3
    • 12th Jan 18, 6:36 PM
    Thanks for the advice but what’s the difference the 2 amounts (£55k and £92k)?

    Is is (today) worth one of those values or both??

    Steve
    • dunstonh
    • By dunstonh 12th Jan 18, 7:55 PM
    • 93,058 Posts
    • 60,448 Thanks
    dunstonh
    • #4
    • 12th Jan 18, 7:55 PM
    • #4
    • 12th Jan 18, 7:55 PM
    it looks like one is for the non-protected rights (money you paid in plus tax relief) and the other is the former protected rights (from contracting out).
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • sandsy
    • By sandsy 12th Jan 18, 9:54 PM
    • 1,338 Posts
    • 806 Thanks
    sandsy
    • #5
    • 12th Jan 18, 9:54 PM
    • #5
    • 12th Jan 18, 9:54 PM
    There!!!8217;s no difference any more. It used to be the case that protected rights had to be used to buy an annuity set up in a specific way. This is no longer the case. You can do what you want with the money in the same way as you can with the rest of the funds.

    But pension providers are slow to change their systems so they still tend to quote it as if it!!!8217;s some thing special and different when it!!!8217;s not.
    • Sarries1968
    • By Sarries1968 13th Jan 18, 6:02 PM
    • 5 Posts
    • 0 Thanks
    Sarries1968
    • #6
    • 13th Jan 18, 6:02 PM
    • #6
    • 13th Jan 18, 6:02 PM
    Thanks Sandsy

    So - assuming that the funds do nothing over the next 5 years (unlikely I know) when I am 55 will I have the ability to draw down all the funds in the scheme?

    I thought as the Protected Funds amount was paid via my SERPs payments (until I took the decision to stop them and went back to the state run scheme - circa 2008) they would be held back and I wouldn't have access to them until I reached state retirement age?

    My ideal would be to draw it all down and clear my Mortgage off.

    Appreciate any / all advice

    Steve
    • dunstonh
    • By dunstonh 13th Jan 18, 7:08 PM
    • 93,058 Posts
    • 60,448 Thanks
    dunstonh
    • #7
    • 13th Jan 18, 7:08 PM
    • #7
    • 13th Jan 18, 7:08 PM
    I thought as the Protected Funds amount was paid via my SERPs payments (until I took the decision to stop them and went back to the state run scheme - circa 2008) they would be held back and I wouldn't have access to them until I reached state retirement age?
    no. One of the reasons for contracting out was to allow earlier payment of the income. Until 2006, you can take them at 60. However, now it is 55.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • OldMusicGuy
    • By OldMusicGuy 13th Jan 18, 8:21 PM
    • 407 Posts
    • 801 Thanks
    OldMusicGuy
    • #8
    • 13th Jan 18, 8:21 PM
    • #8
    • 13th Jan 18, 8:21 PM
    FYI we just found out that my wife has had a small Allied Dunbar pension she forgot about. It's all in the Managed AP fund and has returned on average just over 4.8% per annum over the 22 years she has had it.
    • Sarries1968
    • By Sarries1968 14th Jan 18, 8:14 AM
    • 5 Posts
    • 0 Thanks
    Sarries1968
    • #9
    • 14th Jan 18, 8:14 AM
    • #9
    • 14th Jan 18, 8:14 AM
    Wow - that great news.

    Once last question - is there a simple web site that I could keep tabs on these funds and how they are performing?
    • OldMusicGuy
    • By OldMusicGuy 14th Jan 18, 10:34 AM
    • 407 Posts
    • 801 Thanks
    OldMusicGuy
    There was until yesterday, here: http://webfund6.financialexpress.net/clientsv21/ZurichMyStatement/Widget.aspx?Brand=zuri&viewstate=600#

    However, the link does not appear to be working today. Maybe it will be back soon.
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