LIBERTY LIBERATES - MY PENSION INTO THEIR POCKETS

On 21st March 2020 I received a letter from Liberty reminding me that my Selected Retirement Date was 1st May 2020 together with the estimated value of the investment. The value of the investment was substantially less than I had anticipated. On the 2nd April 2020 I wrote to the CEO of Liberty requesting “your explanation regarding the Current Value of my policy, and how this value is calculated” and to check “if in fact there has not been a simple error/miscalculation” On the 21st April 2020 I received a response to my request which I proceeded to analyse based on the facts provided to me, albeit presented in a very misleading and ********* manner. It was simple mathematics from there. The analysis revealed FOUR very disturbing facts: Firstly, in the first three months of the commencement of the Retirement Annuity Policy I deposited up front “lump sum amounts” being the equivalent of 19,1 % of my total contributions to the Policy. Incredibly Liberty then took a little more than this as upfront fees and charges ie they took almost 20% of my entire contribution towards the policy up front. Naturally, I was totally unaware of this as Liberty continued to send me hypothetical estimates of the value of my portfolio. After five years I was not happy with these hypothetical estimates and asked to cancel the policy. I was told if I did this the payout value would be minimal (now I understand why) so I continued to deposit premiums being for a total period of 34 years. Secondly, after reaching the age of 60, Liberty unilaterally without my knowledge (and therefore my permission) decided to invest my funds (which by then had accumulated ) into a Liberty Lifestyle Managed Portfolio (“LLMP”). This is a portfolio which it clearly states is “suited to the Investor who is willing to accept significant amount of risk” The most basic rule in Retirement Planning is the older you get the less risk you must subject your retirement funds. The question has to be raised, what idiotic financial planner in Liberty took this decision, and why, knowing I had already reached retirement age of 60. Just incredible. Needless to say the LLMP gave a return of 3,71% over the last 5 plus years. Not per annum, this was for the entire 5 year period when inflation was 28,49% over the same period. Thirdly, I now need to see why this portfolio performed as badly as Liberty suggest – is it just because Liberty have taken substantial fees again? Fourthly, incredulously, Liberty are now demanding that if I don’t sign a document confirming that “… the Trustees of the Fund and the administrators of the policy will be discharged from any further liability..” ie accepting all the above, they will not pay me out a cent on my policy despite reaching my Selected Retirement Date. Now it is simple ********* by Directors of a JSE Listed Company. Incredible!!!!!! IF YOU HAVE A LIBERTY POLICY I STRONGLY SUGGEST YOU REVIEW IT – DON’T ACCEPT WHAT YOU ARE GIVEN AT FACE VALUE – GET SOMEONE TO ANALSE FOR YOU PROPERLY. IF YOU DON’T HAVE A POLICY STAY WELL CLEAR OF LIBERTY.