Sun Life with profits closure

lslowry | 19:19 Mon 07th Sep 2009 | Personal Finance

3 Answers

After receiving notice of closure to new people in this scheme, I received a projection of what it will produce on my retirement in 2010 . my cash sum is reduced by a whopping 75 %. the guaranteed sum is the only solace of this useless scheme, as it looks as though that is all i'll get. is anyone else out there in this situation? my advice to anyone is don't bother with a pension, look to other things!!

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factor-fiction

Hi- are you sure this was a pension as it sounds to me more like a life assurance/savings scheme where the payout date coincided with your retirement date.
If it was a pension there would have been worthwhile tax benefits. I think many pensions are worthwhile generally but only if they are worth a decent amount. Small pensions are not on contributions worthwhile as they mean you get a moreorless equivalent reduction in state benefits

Whoever

Did you specifically subscribe to this as a pension or a life assurance/savings scheme? It's probably a long time ago now but do you hold any paperwork which could suggest you might possibly have been a victim of mis-selling? Because of the dive in the stock market in recent times, many people will have been relying on these type of With Profits savings schemes to pay off mortgages, etc. and will find themselves in a shortfall. There's very little you can do about it although it may be worth checking whether you can let the plan run on for a further period of time in the hope of a stock market rise. However, if you were relying on this as a pension and you need it now there's probably little that can be done. I think the sad moral of your story is that when it comes to retirement planning it pays to hedge your bets and spread your long term savings over various different methods in the hope that if one method does not succeed, other options will perform a little better.

lslowry

Question Author

this was the remains of a final salary pension closed by my employer. the money was then placed in this with profits scheme some years ago.

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