Winterthur Life with-profit pension investors face value reduction for switching to drawdown

Personal pension investors in Winterthur Life's with-profits portfolio face large market value reductions (MVRs) when staying in the fund but moving into income drawdown. The MVR charged depends on the exact date of investment and disinvestment. For example, money put into the fund in August 2001 now faces a MVR of 27.53% should the scheme member decide to move into drawdown. Transferring a personal pension into drawdown is classed as taking benefits before retirement date or policy maturity, the group's basic criteria for applying a MVR reduction. While the subsequent income withd...