UnaVida | Equitable Life

Equitable Life

Former Equitable Life with profit policyholders will receive a further payment from the compensation system early next year.

The budget announcement confirms that those in receipt of either a guarantee or savings credit will be eligible.

The total pay-out is estimated to be £45M and applies to with profit policies bought between September 1st 1992 and December 31 2000. Average pay outs are reputed to be in the region of £800, clearly some payouts may be less than this.

This payment is the last planned payment for Equitable Life policyholders and hopefully brings to an end this sorry state of affairs. It was always difficult to compete with Equitable Life, their term insurance rates were astonishingly low, the projections on their pension with profits a work of fiction.

I do recall many years ago and two years prior to the insolvency of Equitable Life being asked to advise a prospective client on whether he should transfer his pension policies to Equitable Life. Naturally I carried out my research from public domain sources and from reliable industry contacts.

I stated that my research indicated that Equitable Life were “technically bankrupt” and that on no account should he should not transfer his policies to them.

I can remember what this poor chaps response was , “If you believe that a company as large as Equitable Life could go bankrupt Mr Best – I’ll waste no more of your time” and he laughed and laughed as he left my offices never to return.

If you recall the government of that time was judged to have been negligent in the administration and supervision of the insurer. As I am sure you are aware the government was forced to launch a “lifeboat operation” in order to prevent the complete loss of all assets for policyholders. The Department of Trade and Industry was severely criticised in the ensuing scandal.

Registered in England and Wales. Registered Number 5553273.
Registered Address: 8f Millars Brook, Molly Millars Lane, Wokingham, Berkshire, RG41 2AD.

A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.