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Categories:Pensions

Prudential offers more guarantees on life and pensions funds

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Prudential is to reintroduce guarantee options on its growth fund and longer-term guarantees on its cautious fund.

The provider is adding a money-back capital guarantee with terms ranging from six to ten years to the PruFund growth, after guarantees were removed in 2009.

For the PruFund cautious, customers are offered the same range of terms in addition to the five-year guarantee that is already offered on the fund.

Prudential product director John Warbuton says: “Research we did in May this year showed that two-thirds of consumers feel uncomfortable with losing up to 10 per cent of their investment. Protecting capital loss is fundamental.”

He adds: “Every so often there is an event that reminds customers that we’re not out of the economic woods yet. Whether it is European sovereign debt issues or concern over nuclear reactors on the other side of the planet, people know global events have local repercussions. I believe it reinforces the desire to have some protection against the worse case scenario.”

Guarantee fees for the PruFund protected cautious funds are 1.05 per cent for five years, cascading down to 15 basis points for 10 years and for the PruFund protected growth fund 1.05 per cent for six years going down to 30 basis points for ten years.

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Readers' comments (1)

  • The sheer audacity of UK insurers never ceases to amaze me.Prudential is now offering more guarantees on life and pension funds.They gamble with our money and then charge us for the privilege of any guarantees,unbelievable.The UK investor is paying some of the highest charges in the world.When on earth will you get it through your heads that we want our charges reduced not increased.

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