| Scottish Life Personal Pension. 1.87% Interest! [message #373766] |
Mo, 20 März 2006 10:16 |
|
I have a Scottish Life (Sovereign) Personal Pension which invests the
capital in the Money Markets. I was informed that the best rates of
interest could be achieved because the combined assets of all the
policyholders are pooled. This rate would be better than I could
achieve personaly.
Indeed for the first years (my plan started 1985) interest achieved was
always greater than Base Rate. However in the past three years the
interest has seriously under performed Base Rate :
Year ending March 2003 ..... 3%
Year ending March 2004 ..... 1.87%
Year Ending March 2005 ..... 2.75%
(All charges are on contributions paid NOT the capital account)
Why this sudden under performance?
De-Mutualisation = Creaming off interest rate?
or
Deliberate under performance to encourage holders of this plan to
transfer out and lose
benefit of Guaranteed Annuity Rate?
Has anyone else a policy with a different company that invests in the
Money Markets?
If so what has it achieved?
Has anyone else a Sovereign Policy with Scottish Life?
What do I do? (HELP!)
Thanks ... Adrian
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| Re: Scottish Life Personal Pension. 1.87% Interest! [message #373769 ] |
Mo, 20 März 2006 11:37 |
|
If your Guaranteed Annuity Rate is high enough stick with them. Estimate the
fund value at maturity, at say 3% and 6%growth and compare the annuity at
GAR with an annuity at current rates.
"Adrian" <aspong [at] hotmail.com> wrote in message
news:1142846208.615560.318890 [at] v46g2000cwv.googlegroups.com...
|I have a Scottish Life (Sovereign) Personal Pension which invests the
| capital in the Money Markets. I was informed that the best rates of
| interest could be achieved because the combined assets of all the
| policyholders are pooled. This rate would be better than I could
| achieve personaly.
|
| Indeed for the first years (my plan started 1985) interest achieved was
| always greater than Base Rate. However in the past three years the
| interest has seriously under performed Base Rate :
|
| Year ending March 2003 ..... 3%
| Year ending March 2004 ..... 1.87%
| Year Ending March 2005 ..... 2.75%
|
| (All charges are on contributions paid NOT the capital account)
|
| Why this sudden under performance?
|
| De-Mutualisation = Creaming off interest rate?
| or
| Deliberate under performance to encourage holders of this plan to
| transfer out and lose
| benefit of Guaranteed Annuity Rate?
|
| Has anyone else a policy with a different company that invests in the
| Money Markets?
| If so what has it achieved?
| Has anyone else a Sovereign Policy with Scottish Life?
|
| What do I do? (HELP!)
|
| Thanks ... Adrian
|
|
|
|
