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Windfall for Equitable Life policyholders

Windfall for Equitable Life policyholders

Category: Pensions

Updated: 28/03/2011
First Published: 28/03/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Around 400,000 existing Equitable Life policyholders are to receive a boost to their future pension earnings.

The society has revealed that policyholders that begin drawing their pension from 1 April will benefit from a 12.5% rise in payments.

Extra funds have been able to be released by Equitable as the society has moved its capital to safer investments, and was therefore no longer needed to cover potential liabilities in the stock market.

Those people that have already retired or will do so before Friday, as well as those who have transferred their policies, will not receive any of the windfall.

All those affected will be written to by Equitable Life.

It is the latest development in a saga that began ten years ago when the society almost went out of business.

Since that time policyholders have endured an uncertain time, with many of them facing the prospect of losing large sums of their savings.

The society said that the enhancement is 'above and beyond' any compensation paid by the Government.

"We've done a lot of talking about what we'd like to do to recreate policyholder value," commented Equitable Life's chief executive, Chris Wiscarson.

"Today, we're actually doing what we said we were going to do. May this be the start of a better future for our policyholders."

The Government is expected to reveal more details about the compensation Equitable Life policyholders will receive in the coming weeks.

It will detail when payments are made and how long they will be spread out for.

In 2010, it was announced that around 1.5 million current or former policyholders would share compensation totalling £1.5 billion, with £620 million to be divided between 37,000 with-profits customers.

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