Returns earned by the With-Profit Fund are added to your pension annuity income through bonuses. Essentially, the bonuses represent your share of the profit in the fund. There are two main types of bonus that can be applied to your income: a regular and an additional bonus.
At the start of the plan, you choose an Anticipated Bonus Rate of between 0% and 5% in 0.25% steps. When choosing your Anticipated Bonus Rate you are in effect predicting (or 'anticipating') how well you think our With-Profit Fund will perform and the level of bonuses you will receive. If the bonuses declared are higher than the Anticipated Bonus Rate you have chosen, your income will increase. If the bonuses are lower, then your income will decrease. After 12 months you have the option of increasing or decreasing your Anticipated Bonus Rate within the range available at that time. To give you peace of mind, we also provide a guaranteed minimum income which guarantees that your income will never fall below a minimum amount. This is the amount of income you could have bought at the start of the plan on an Anticipated Bonus Rate of 0%.
If you change your anticipated bonus rate we will recalculate your annuity.
You can find out more about how this annuity plan works in a guide to your With Profits Pension Annuity Investment and how we manage the With-Profit Fund (PDF 143KB).
For new policy enquiries or information on our products please call
0800 068 3038
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If you are an existing Annuities customer, please call
0800 068 6800
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