If a with–profits annuitant had purchased their policy in 1989 and gained through that purchase an income of £7,200, by 1993 the policyholder would have been receiving an annuity of approximately £10,000 per annum. Part of that sum was a result of the bonuses that had been declared on the policy since commencement. It is recognised that Equitable Life was paying higher bonuses than it could afford during the late ‘80s and early 1990s. If Equitable Life had not been over-bonusing during that period, Towers Watson has calculated that the policyholder would have received only £9,500 per year.
It is a consequence of the maladministration that the policyholder is receiving £500 more than he or she should have during that period.

THIS IS NOT SO.

I did take out my policy in June 1989- purchasing an income of £8487.68, and the highest it ever achieved was £9443.95 in 2000. By 2007 it had dropped to £4409.25. Having dropped £5000.00 in six years.
Hoban did not go on to say how much his example annuitant had lost, I WONDER WHY!!
It is a consequence of maladministration that the policyholder is losing much more than he or she should have during that period.

The art of making figures suit the situation is knowing where to stop for maximum effect.Hoban knew when to stop!!!
My pension is now down to £3470.00
THANK YOU MR HOBAN!!!


Once again it goes to show how easy it is for the treasury to pull the wool over the eyes of MP's and the general public without challenge.