The Prudential has advised with profits policyholders that there will not be a windfall payment to them of surplus funds after considering the option fully.
There was a consideration of the option, working out at around GBP1,000 per person which would have been in exchange for these customers giving up the right to any future pay outs from the assets the Prudential inherited from other companies. However it has been decided that the inherited funds will be better employed withn the organisation right now, especially in the current economic climate where financial institutions are looking to maintain as much financial fluidity as they can.
Customers of the Prudential will surely not feel too aggrieved by the decision since it looks like the sensible and considered option to most commentators. It is better to have a strong business than no business at all.
According to the Prudential retired people have substantial assets and savings although they are not maximising them to aid their standard of living.
On average retired couples have almost GBP270,000 in assets and savings whilst single pensioners have half this amount. However, even though they have these large funds at their disposal, less than 20 percent of them have sought professional financial advice. A Prudential representative was amazed at these findings, feeling that pensioners were missing out on perhaps thousand of pounds extra by better using their money.
Even ignoring the value that people have in their homes a retired couple still has around GBP135,000 in accessible funds. This money should be made to work harder said the man from the Prudential and deliver a better standard of living.
Legal and General has today launched a new pension product, called the Portfolio Plus Pension it is designed for customers who want to spread their investment in a large number of funds.
Over 40 fund managers are responsible for around 300 different funds, with customers pension payments being spread between up to 100 of them. Both Legal and General themselves plus independent financial advisors are promoting the new Portfolio Plus Pension, giving customers plenty of choice regarding access to it.
A Legal and General spokesman said that this particular pension option would be ideal for those customers who would like the flexibility inherent in a self invested personal pension.
