"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
Equitable Life is almost certainly the highest profile with profits collapse, caused by all the problems which beset almost all other with profits policies (e.g. high annual and terminal bonuses which could not be sustained) but, further, suffered from the high guaranteed annuity rates it included in its policies
When market annuity rates fell below these guarantees Equitable Life couldn’t support the guarantees. It tried to avoid the liabilities but prospects of such a dishonourable escape were scuppered by the Courts. Independent actuarial research continues to rate Equitable Life with profits as “very weak”. So, what should policyholders do now?