Equitable Life with profits pension / takeover.

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Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post
    varne27 wrote: »
    It seems that most posters are looking for reassurance prior to accepting. This is fair enough if about to take pension benefits.
    I am not, and would be extremely unhappy about investing a large sum in todays markets. Any long overdue market correction could wipe out my value uplift overnight.
    Anybody know the market value of the present 3 1/2% quaranteed return? ....... Well no, because it is not available anywhere. So you might say it is priceless.
    This is all before I consider the terms that will be available from a dubious feeder on troubled pension funds.

    1. Wont be worth very much if the company goes bankrupt

    2. Ditto if inflation were to exceed 3.5%

    3. One can always put money in guilts if he is confident the stocks are about to lose value and the money is needed soon. The yield will be lower but with 68% uplift it would take over 2 decades for the value of guarantees to catch up.

    4. And if one’s investment horizon is over 2 decades then a balanced fund should provide over 3.5% average annual return with a high degree of confidence
  • Julian999
    Julian999 Posts: 2 Newbie
    In my opinion this process is being conducted the wrong way round. The people with the least experience in the insurance/pension world (i.e. us, the policyholders) are being asked to make a decision that will affect our future income and in so doing relieve Equitable of their responsibilities regarding the safe keeping and growth of our funds. Our current contracts are with Equitable with specified guarantees and safety for our money. It is Equitable who should be telling us that this is the correct way forward and that our guarantees will be maintained even if that means foregoing the uplift, otherwise they should keep looking. What is Equitable's responsibility post transfer if Utmost funds go topsy-turvy?
  • Effervescent
    Effervescent Posts: 92 Forumite
    As I have a unit-linked policy I don't get the right to vote which I feel is a bit unfair. All I can do is write and object to my policy being transferred to a new company
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post
    Effervescent wrote: »
    As I have a unit-linked policy I don't get the right to vote which I feel is a bit unfair. All I can do is write and object to my policy being transferred to a new company

    That’s the case with most policies though; companies take over each other and policyholders don’t get a say unless policyholders actually own the company like with Equitable.

    In any case, you can always switch to another provider.

    Remember, if the vote is “no”, EL will have smaller amount of funds under management while the costs are hard to reduce. Someone will have to pay and it can’t be with profit fund owners.
  • greatgimpo
    greatgimpo Posts: 1,256 Forumite
    Deleted_User wrote: »
    Someone will have to pay and it can’t be with profit fund owners.

    ...specially with the 3.5% GAR - does anybody have more than 3.5%?
  • POPPYOSCAR
    POPPYOSCAR Posts: 14,897 Forumite
    First Anniversary Name Dropper First Post
    Awaiting my pack with bated breath.

    I expect however, I will still be non the wiser when it does arrive!
  • POPPYOSCAR
    POPPYOSCAR Posts: 14,897 Forumite
    First Anniversary Name Dropper First Post
    edited 6 August 2019 at 5:13PM
    POPPYOSCAR wrote: »
    Awaiting my pack with bated breath.

    I expect however, I will still be non the wiser when it does arrive!


    It arrived today.

    Must of cost a fortune to produce and send out.

    What a waste of time and money.

    And as I expected I am non the wiser.

    How they can expect anyone to read through that lot is beyond me.

    Has anyone?

    If so, can they point me in the direction of where it gives details of the actual scheme we would be transferring into and what happens if we want to transfer out of it etc.?







    I have just rung the helpline.(Which is not actually Equitable)

    I had to give them all my details

    According to them my terms and conditions will remain the same as is with Equitable.

    i.e. I will still be able to do flexible draw down and can transfer out with the same terms and conditions as Equitable.

    As the Transfer to Utmost is due to take place 1st jan 2020 it might take place on 31st dec or 2nd Jan.
  • Scot_39
    Scot_39 Posts: 1,816 Forumite
    First Post First Anniversary Name Dropper
    Maybe early days - but finding very little in press so far.


    There was this small article in "The Times" on Sunday.

    The one advisor quoted errs on the upside - clearly so for those close to retirement - and more cautiously for all / by implication - younger members.

    I am not allowed :( to post direct link to it (would make it easier for others) - but if you want to have a look type at least some of following into google:-

    the times equitable life vote should you take a final pay off


    Hopefully in coming days / weeks - we may see more commentary / advice in the financial press.


    If you find any more articles please post references and or links if you can.


    Good luck to all (whatever happens / whatever outcome you may prefer ).




    Regards
  • david78
    david78 Posts: 1,654 Forumite
    Utmost Life and Pensions is the new name for Reliance Life.
    Utmost have bought the Equitable Life Assurance Society.
  • pafpcg
    pafpcg Posts: 882 Forumite
    First Anniversary Name Dropper First Post
    edited 6 August 2019 at 5:46PM
    POPPYOSCAR wrote: »
    .... can they point me in the direction of where it gives details of the actual scheme we would be transferring into and what happens if we want to transfer out of it etc.?
    As it seems that I've had longer to look at the paperwork, I can answer some of your questions:

    We won't get the details of the Utmost offerings until the "Investment Choice Pack" is sent out later in August. But, if you look on page 22 of the Part B of the Explanatory Booklet (the big fat one), you can get some indication of what might be on offer, but nothing on charges or T&Cs.
    I have just rung the helpline.(Which is not actually Equitable).
    No, it's JLT Wealth Management who are being paid by Equitable. See page 38 of the Explanatory Booklet Part A (inside the back cover) for details of the support being offered by Equitable.
    I had to give them all my details

    According to them my terms and conditions will remain the same as is with Equitable.

    i.e. I will still be able to do flexible draw down and can transfer out with the same terms and conditions as Equitable.
    That's useful information (and encouraging!). Thanks for sharing.
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