Prudential has removed its guarantee to keep withdrawals free of market value reduction (MVR) charges on its with-profit bonds and pensions, blaming rising costs.
Prudential will not be giving MVR guarantees on withdrawals from its Prudential Investment Plan (PIP) and Flexible Retirement Plan (FRP) on new business drawn up after 11 November or on some existing plans where the client has made additional investments after that date. The company said it was forced to make the changes due to the rising cost of making the guarantees, brought on by a change in market conditions. The MVR changes will not impact existing customers investing in the PruFund range of funds, the insurer said. A spokesperson said: "Over recent years, market conditions ha...
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