Hello, I'm new to these forums and would like some advice on a problem I have understanding the complex world of pensions!
I am about to retire and have a personal pension invested with one of the leading financial institutions in the UK.
6 weeks ago I contacted the company stating my intentions to take my pension asap whereupon I received a retirement illustration with the total current value of the fund clearly shown, together with my options and yearly pension figure.
I then asked for another illustration as I had missed the deadline for retiring in December 2012 and I was sent another package showing the figures if I started the pension in January 2013 and the total current value had increased slightly.I completed the necessary paperwork and today received a call informing me that the forms had been received but the fund was less than quoted on both illustrations. In fact it was over 10% less.
I asked why the fund had been reduced and they are 'looking into it' but I am obviously concerned .
The pension plan has a guaranteed annuity rate which is double the current standard rate and I am wondering if this fact is significant.
Is it normal for the total current value figure to be so different to the final fund value when the figures are only a week or so apart?
Any advice or information will be very welcome, thanks.