Pension Query - advice please

Most (all?) pension policies do not have a "death benefit" as such. However, there are usually 3 options where death occurs before the pension is taken :

1. Return of premiums.
2. Return of premiums with interest.
3. Return of fund.

To maximise pension, option 1 is best. However, as probably here, where death occurs after the policy has been in existence for many years, option 1 could mean a much smaller payment to the deceased's Estate than option 3.

You may have grounds for complaint, if you can prove that he had received negligent advice. A lot of companies have highlighted the differing options when the annual statements are sent out - and perhaps in a specific letter. Have you asked his insurance company about this aspect specifically?

The pension company will not discuss it with me. I can take it or leave it - there is a clause in the policy which says "return of premiums" and that is all they will say.

My husband was never consulted about the pension. At the time my father-in-law was advised by his accountant that he should take his sons into partnership and as they would then be self-employed they should have a private pension. The accountants went to Solomon Hare and they put the pension details together for my husband and his brother.

I was concerned about five years ago that the pension was too small and wrote to the Company, on my husband's behalf to ask if there was a mechanism for paying more money into it - and as I recall I also asked about benefits in the case of death.

They wrote back, to my husband saying that they had received a letter from me and sent him an updated statement of the fund - they did not answer the questions asked saying that I was not entitled to ask them or words to that effect.

PB

"Doug Ramage" wrote

I guess this may be difficult, with the advice having been over 30 years ago - recollections being less clear & some documentation may not be available (plus advice being before 1986...).

Indeed. Also, RWI (Return With Interest) or RNI (Return No Interest) are not inherently poor options - I have several myself.

However, I am concerned that only 5 years ago, you were worried about the pension fund. Assuming that Solomon Hare (SH) were the original introducers of the pension business, I would have thought that the insurance company would have sent a copy to SH (potential new busines).

Who gave the advice last April about delaying the annuity? That *might* have been negligent advice.

Are you the Executrix/Administratrix of your husband's Estate?

It would appear the Eagle Star, the insurance company did nothing but repsond as I have stated - certainly if they informed SH of my letter then SH did not follow it up.

An independant advisor - but my husband was apparently in good health. He showed no signs of illness at all at any stage - just went to bed at 11.30 one night and was dead by 12.

His father lived into his 90s - his mother was 75 when she died - no reason not to expect longevity.

Yes - administrator as there was no will.

thanks for your comments

PB

Did the IFA not comment on the option of RWI/RNI (whichever applies)? I assume that he/she must have a "Fact Find" before giving the advice to delay taking benefits?

This did not apply when my husband was alive - he could ahve drawn down on the pension or taken it or deferred it until 70.

As we were not in desperate need of the money and the annuity rates were are so poor he decided to defer it.

The RNI only applies to me as his widow and heir. The FA which I saw did say that they do not sell these sort of pension policies to young people with families any more particularly those in high risk occupations - and farming is a high risk occupation in terms of accidental deaths.

PB

So did he mention to your husband the option of converting the policy to ROF (Return of Fund)? Did he review his other life cover, if any?