"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
These three long-established insurance companies became part of the Australian giant, AMP, in 1999 and all three (all four if the misfortunes of the parent company is included) suffered badly with the demise of with profits.
Bonus rates were decimated and policyholders attempting to transfer-out were hit with huge penalties. These three companies were demerged from AMP in 2003 to a new company but, still, our actuarial consultants – AKG – report and affirm the continuing weakness of all three companies. But policyholders may still be hit with penalties on transferring-out. What to do?