Troubled Insurer, Equitable Life has issued a letter to Pension Fund Withdrawal policyholders (also known as 'income drawdown') advising that no compensation will be paid to people who believe they were mis-sold these plans unless they can categorically prove that they would have preferred a guaranteed income.
There is a questionnaire that policyholders are required to complete with regard to this issue and whether their case will be considered. Many believe that they should have been advised to take retirement using conventional annuities i.e. a guaranteed income for life rather than the drawdown route that provides access to tax free cash but leaves the pension fund invested in the markets. As you would expect many have seen the value of their pension funds in freefall over the last few years as well as annuity rates (the interest rate that you would be paid for a pension income) fall. The net result that most people could only get a dramatically reduced pension today compared to what they would have received a few years ago.
Our view:
Pension Fund Withdrawal is complex. Likewise making a complaint is complex. You must seek advice before completing any questionnaire to ensure that you do not sign away your rights.
Find out all your paperwork relating to the advice given and then contact us about our complaints handling service.
Would you like copies of our free fact sheets on Equitable Life and Complaints - Putting your case forward? Contact us.
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