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My personal pension matures next year. Should I shift out of With Profits and into cash to prevent my nestegg being shredded by the market slump?

grumpiestt
by grumpiestt 07 October 2008  |  Comments 2 comments  |  Love Love  0 loves

My pension is with Norwich Union and was valued in January at £115,000. Will this value go down as a result of current market conditions? Or will the "smoothing" applied to with profits policies safeguard its value for the next 9 months.

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Comments (2)

  • 7ujn
    Love rating 0
    7ujn posted

    It depends on whether the value you quote is the fund value or transfer value and whether it includes any element of Terminal Bonus. If it includes a Terminal Bonus then the value could indeed reduce because Terminal Bonuses are not guaranteed. If the value you quote does not include any Terminal Bonus then you should at least get this value when you reach your selected retirement age. If the value includes a Terminal Bonus and you want to lock it in now, then switching to cash will achieve this. Mind you with everything going on with banks at the moment even a cash fund is not safe - it can still go down in value!

    Posted on 07 October 2008 | Love Love  0 loves Report
  • grumpiestt
    Love rating 0
    grumpiestt posted

    The fund value and transfer value quoted are identical.

    They include a With Profits final bonus of just over £5,000 and a With Profits Guaranteed final bonus of just over £17,000.

    Posted on 07 October 2008 | Love Love  0 loves Report

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