Equitable Life - Prudential
An Equitable Life ?
There is new hope for the thousands of pensioners trapped in failing Equitable Life with-profits annuity funds. Equitable have arranged to transfer their policies to Prudential.
The £1.8 billion fund transfer is expected to affect 50,000 Equitable annuity customers, many of whom have seen their retirement income fall by almost half since investing their savings in the fund.
Good News for All?
Analysts suggest that the announcement may be followed by similar changes for the rest of Equitable’s 230,000 with-profits policyholders.
The Equitable with-profits annuity holders are expected to benefit from the move because of the higher returns that Prudential has delivered. Eligible Equitable members will vote in October on the proposals. Since 2000 the investment return on Prudential’s with-profits fund has been almost double that of Equitable. Thgis is because it has invested more heavily in better-performing assets, such as equities and property. Equitable, however, has been forced to keep the bulk of its investment in less profitable but safer fixed-interest assets since the company’s near collapse.
Lambeth / Portman /Nationwide Merger
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