New Risk Warnings from 6 April 2018
From 6 April 2018 the Government introduced a new safeguard so that members are told of the implication of giving up certain valuable guarantees. These might include Guaranteed Annuity Rates, Guaranteed Minimum Pensions and Guaranteed Basic Annuities (sometimes referred to as Deferred Annuities).
Prudential must provide the new and detailed risk warning to your members before they make any decision to access their pensions, and at least 14 days before any payment is made, for example for a transfer value or Uncrystallised Funds Pension Lump Sum.
Prudential will send the new risk warnings to your members on your behalf when one of the following information packs are issued:
- Early or Late Retirement packs
- Transfer Information pack
- Retirement Wake-up packs
- Approaching 75th birthday packs
The new risk warning will be sent separately to the information packs.
The new risk warning shows your members the value of their pension if they retain their guarantee, and the value of their pension if they decide to move their pension and lose their guarantee.