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.
The Prudential is warning people that the current state pension cannot be relied upon to provide a decent standard of living.
A spokesman from the Prudential said that everyone should be putting more money aside for retirement from a much earlier age. Without this financial provision there are going to be many people finding life very hard as they reach retirement, something that no-one wants to see.
According to Prudential figures well over a third of people actually lose sleep thinking about the financial pressures they will face in retirement. This situation can be resolved through forward planning and saving over a longer period of time. As long as the pension provision can be afforded by the individual and day to day living can still be enjoyed then early pension planning can transform the future.
As the cost of living goes higher and higher in the UK so more people are looking at retiring to a different country say Saga Insurance.
A Saga Insurance spokeswoman explained that currently less than 1 percent of those retiring move abroad in order to cut their living costs, though there has been much more interest in the idea recently. It will help those about to retire that their property values are at all time highs. This gives them a good base from which to set up home abroad.
There are many factors to consider when living abroad said the Saga Insurance spokeswoman, with costs being just a part of the equation. Lifestyles are very different overseas and it can sometimes be difficult giving up things that have been part of life for so long.
