Aegon Illustration Issues
Nathan
Member
Hi All
This morning, I thought rather than get angry with Aegon, concerning them continually producing illustrations that appear to be incorrect, we try to engage with them to see if we can get a few of us together to help one another understand the problems we face.
I, like many I would assume, have come to expect that when I see that a client has an existing Aegon pension policy, that the illustration provided will be incorrect. (This is not always that case, but more often than not.)
Now rather than moan, lets engage with Aegon and try and understand how they generate the illustrations they produce and see if we can influence how they produce them going forward.
I have started a Twitter poll
By way of an example I was working on a scheme this morning that is currently valued at £239k and using the low growth rate of -2.21% per annum over 5 years, the projected pension at retirement was £240k. Now it doesnt take a genius to work out that this is not right, unless of course I am completely missing something.
Please could you click on the Twiiter poll and log any experiences below that you may have had, so we can share this with Aegon and hopefully turn our frustration into a positive outcome.
Thanks All
Nathan
This morning, I thought rather than get angry with Aegon, concerning them continually producing illustrations that appear to be incorrect, we try to engage with them to see if we can get a few of us together to help one another understand the problems we face.
I, like many I would assume, have come to expect that when I see that a client has an existing Aegon pension policy, that the illustration provided will be incorrect. (This is not always that case, but more often than not.)
Now rather than moan, lets engage with Aegon and try and understand how they generate the illustrations they produce and see if we can influence how they produce them going forward.
I have started a Twitter poll
https://twitter.com/fryer_nathan/status/795929984124776448
This is not to name and shame, but hopefully help Aegon recognise that it is not just a few of us that experience these issues.By way of an example I was working on a scheme this morning that is currently valued at £239k and using the low growth rate of -2.21% per annum over 5 years, the projected pension at retirement was £240k. Now it doesnt take a genius to work out that this is not right, unless of course I am completely missing something.
Please could you click on the Twiiter poll and log any experiences below that you may have had, so we can share this with Aegon and hopefully turn our frustration into a positive outcome.
Thanks All
Nathan
Comments
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern.
By way of an update, I have heard back from Aegon today saying that they are aware of the inaccuracies within the system.
The illustrations they appear to be having problems with are the ones with the graduated contributions aligned to Auto-Enrolment.
I told the person I spoke with that I have been in receipt of this incorrect information for at least 3 months and many of us have experienced other problems and suggested that the issue be escalated. To which I was told it has been. For me, this has not been escalated high enough to have taken 3 months or more already.
I was assured that the annual illustration that the client receives are correct, to which I asked if they understood that adhoc illustrations are used to ascertain the reduction on yield of a scheme in order to provide advice. I asked if they expected us to base our advice based upon projections that in theory could be 12 months out of date.
I asked, Aegon are interested in getting these details correct, and wondered if they have considered the implications for the recently purchased Cofunds. To which I was told, that they understand our concerns.
I started this, this morning in the hope that we could engage with Aegon to see if we can get a mutual understanding of the issues. It feels very much to me that they have no interest in correcting the issues that we face and it leads me to question how much of the other information they supply is correct.
I truly believe that service is one of the only key differentiators in this market and without good service and accurate, timely information they are dead in the water.
As I say, I was truly hoping to help Aegon, but it feels as though it has fallen on deaf ears, again.
Please continue to comment on this thread in order that Richard has more than one person’s feedback to pass on to Aegon.
@Nathan
I don't think that they do.
I haven't received a reply.
Also, I would love to know who offers wage growth of 4% per year and whether this accounts for the impact of inflation.
I have attached my workings, i hope they help someone else?
If I understand this thread correctly you accept that you have a correct COBS illustration provided by Aegon. It is merely the wage growth assumption which creates a 'problem'?
On a mathematical note, you will rarely (if ever) get an excel spreadsheet to match a provider's projections although you will be relatively close. Where you have monthly contributions, in particular, excel can not account for different numbers of days for each month whereas provider system would.
As I am sure you know, your conversion of annual to monthly growth rates is not mathematically correct. Over short periods of time, this will not matter, but the inbuilt error will increase for longer terms.
I am sure Aegon can alter the wage growth figure for alternative illustrations to match your / adviser / client views on this?
Regards
Richard Gough.
I thought you would know re monthly annual returns etc; I mention it because when I was assessing for IFP the number of candidates who continually got that wrong was staggering.
As regards the RiY then unless there are fund sized loyalty bonuses or additional fixed charges / allocation rates if you use SelectAPension to assess the RiY of the Aegon contract on its own then that gives you a good place to start. You can compare this RiY with that of alternatives.
Another approach - surely Aegon will produce a projection based on a future contribution basis of your choosing - say a regular amount increasing at x% per annum or a level ongoing contribution which you can then compare with other providers?
Today's Aegon gripe...
I have received details of an existing pension which includes a page headed 'charges summary'. This gives the charges for the last year in pounds and pence - clear for the client, but next to useless for a paraplanner or IFA.
It also tells me there's a Fund Charge Rebate Yearly Amount of £248.52. As the client is making monthly payments into the plan, I can't unravel these figures. So now I need to call Aegon, and you need to pay someone to spend their time talking to me...
@chubb Why is the information provided in this way please? Granted this is not platform business, but it is what shapes my view of Aegon as a company.
Update:
On calling Aegon, they tell me there is no fund charge rebate. I pointed them to the page of their own letter that says there is. Changing their mind, they tell me yes there is one, but calculating the percentage figure will 'need to be created as back office query' and will take x working days. It's painful. To save my own soul from the depths of despair from which it may never return, I'm going to work on something different now.