Is Money looks at the background to the Equitable crisis and how customers will be affected by the Halifax takeover. These GARs give far higher pensions than are on offer for the same money. Unable to find a partner to help foot the bill, Equitable shut for new business in December. More than a million people with money invested in Equitable's with-profits fund. It closed in December and will stay shut.
Customers can pay into existing plans.
More money will mean improved returns. Insurer Clerical Medical, owned by Halifax, will manage all Equitable funds. Equitable and Halifax are expected to offer GAR policyholders a one-off payment in return for sacrificing their rights to guaranteed rates in the future. Experts say that the 90,000 policyholders with GARs should look long and hard at what they are being offered before they agree to the deal. The closer these customers are to retirement the bigger boost their funds will need to compensate them for giving up their guarantees.