Pensions crisis: Boo to the Pru
If you're saving for your old age, it pays to shop around, because it seems that Prudential are leaving tens of thousands of pensioners out of pocket. The financial giant is currently offering incomes from lump sums that are about 20% lower than other companies, such as Canada Life and Aviva.
If you’re on a £100,000 pension, the difference amounts to £1,000 less income a year for life – which in retirement terms averages out at about 20 years. The best income available from a £100,000 pension plan is £6102 (offered by Legal and General). But if you’re with the Prudential, you’ll only get a piddling £5011. Not nearly enough to keep you in Steradent and big slippers.
This is bad news, especially as a recent survey shows that currently, over half of the UK workforce is over 50. And 71% of them are dealing with the very real possibility that they’ll have to work during their dotage to supplement their crappy pensions.
Pensions expert Ros Altman said: 'Anyone buying from the Pru at those rates is giving up a fifth of the income they could get – no one in their right mind would do that knowingly. Every other provider is offering much more’.
Even a spokesman for the Prudential has said it's important to shop around for the best deal. So maybe do that, now, before you end up wrapped in a sack and on living on beans until you're 90.