Equitable Life pension question for IFA/City types

[MikeyT]

Sorry to bore people to death with this but have pension with Equitable Life - fund worth about £22k - seem to have had it for years but what the hell.

PAYE so erring on transfering into new company's fund, BUT being penalised 20% of fund total by ELife!

Do I take it out and incur the penalty? I know ELife have had an up and down time but I don't feel safe with it being with them to be honest. Can just cease payments but then the fund just stands still apparently until I reach 50 and decide to take it for whatever.

Thanks

[MikeyT]

It's 'with profits'.

Think the general consensus in the financial press is to take the 20% hit - just wondered if there were any others in the same boat.

I can transfer into another similar fund (not the Group Pension Plan I've just joined) - would this be a good idea and is it better to 'spread the risk' somewhat?

TIA

[MikeyT]

Thanks for the responses, I think I'll end up biting the bullet in the end.

That small claims thing wouldn't work Harry, they had a vote of all pensionholders and the like and IIRC, voting for a penalty and suspending all legal action threats actually meant the Equitable were able to trade - a vote against would have been catastrophic.

Thanks again for everyone's advice.

[uk66fastback]

Perhaps the oldest thread resurrection ever!? uk66fastback though now, I'm no longer MikeyT

Here we are again then - good old Equitable Life. I don't know whether any of the posters on this thread are still around on PH ... I think Harry W seems to be. I never transferred out of the fund 16 years ago but will be doing soon (see below).

Current state of play is that Equitable Life are winding down their operations and all of their with profits plans are being transferred to Reliance (part of Utmost - or vice versa) and these plans will become unit-linked policies.

This transfer is having to go before the courts to get approval and if all goes okay, according to their communications, policy holders can expect 'a 60-70% uplift' to their policy values. All good stuff and unexpected. You can of course choose to leave before the end of the year, but would only get a '35% capital distribution' ...

So this just an update but a question also: I am thinking that after the 60-70% increase into the fund, the full range of options will be available still - ie leave, take a portion of up to 25% etc - and then buy an annuity or do something else with it (drawdown etc).

I did phone Equitable and got put through to their 'advisors' and couldn't make the guy understand my question ...

Any help appreciated.