Anyone knowledgeable on pension funds?
Discussion
I need to get my head around a situation - to work out if I have incurred any financial loss because of a mistake made by a pension provider? 
Could anyone knowledgeable in such matters comment please:
I have a personal pension which has an automatic 5% annual premium increase built in. Due to what the pension provider terms a "technical error", they forgot to apply this in 2004.
On eventually spotting this last month, I wrote and complained and had them look into matters. They have fessed up to their mistake and are now offering to rectify matters by collecting a one off premium from me, which they will backdate and apply at the correct due dates.
So by this I gather they will buy units at the price they were on the day they ought to have been bought, purportedly "at no financial loss" to me.
So then onto the thing I can't get my head around...
Have I lost anything by having less units for less time? Or is it just the TOTAL number of units I have purchased by my retirement date that matters (and their value at that point in time)?
Thanks in advance for any help in sorting my head on this!
Could anyone knowledgeable in such matters comment please:
I have a personal pension which has an automatic 5% annual premium increase built in. Due to what the pension provider terms a "technical error", they forgot to apply this in 2004.
On eventually spotting this last month, I wrote and complained and had them look into matters. They have fessed up to their mistake and are now offering to rectify matters by collecting a one off premium from me, which they will backdate and apply at the correct due dates.
So by this I gather they will buy units at the price they were on the day they ought to have been bought, purportedly "at no financial loss" to me.
So then onto the thing I can't get my head around...
Have I lost anything by having less units for less time? Or is it just the TOTAL number of units I have purchased by my retirement date that matters (and their value at that point in time)?
Thanks in advance for any help in sorting my head on this!Correct - it is the unit price and the number of units. Nothing else matters until you cash in on it when you retire day.
But see an IFA about it, just to ensure you're in the right funds, etc. You can find one here:
www.find.co.uk
But see an IFA about it, just to ensure you're in the right funds, etc. You can find one here:
www.find.co.uk
While we're talking about pensions...
I have an old pension fund that i'm not paying into anymore, however I opted out and my NI contributions are being paid into that fund.
It has about £13k total in it at the moment, including the NI stuff, but a lot of that money was from my own and my previous employers contributions when I was paying into it.
Can I get any of that money now? I know that it's possible to transfer some of the money into my main pension, but I'd kinda like that money in my pocket to fund buying stupidly powerful cars that I don't need.
Can I get any of it and how much would I lose if I could get it? I assume that I'd lose at least 40% through income tax immediately...
I have an old pension fund that i'm not paying into anymore, however I opted out and my NI contributions are being paid into that fund.
It has about £13k total in it at the moment, including the NI stuff, but a lot of that money was from my own and my previous employers contributions when I was paying into it.
Can I get any of that money now? I know that it's possible to transfer some of the money into my main pension, but I'd kinda like that money in my pocket to fund buying stupidly powerful cars that I don't need.
Can I get any of it and how much would I lose if I could get it? I assume that I'd lose at least 40% through income tax immediately...
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