Bonuses and returns
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.
- We confirm regular bonus rates once a year.
- The regular bonuses may increase the guaranteed minimum income for your plan.
- The investment returns we expect in the long term will be an important influence on regular bonuses. For example, if we expect future investment returns to fall, we may reduce the regular bonus, even if total returns in recent years have been higher.
- Please remember that the level of regular bonuses can go down as well as up and there are no guarantees that regular bonuses will be applied in the future.
- Depending on the returns earned by the fund to date, we may pay an additional bonus. Along with the regular bonus, this will determine your income for the year.
- We review the additional bonus at least twice a year, but possibly more frequently.
- The additional bonus rate is likely to change more frequently and by a greater amount than the regular bonus rate.
- The additional bonus rate is not guaranteed and may change at any time.
Anticipated Bonus rate
- 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.
Pension Wise is a free and impartial service set up by the government for people retiring with defined contribution pensions. It will help you understand what your choices are and how they work.
You'll be able to get help on the Pension Wise website, over the phone or face to face about:
- what you can do with your pension pot
- the different types and how they work
- tax you pay on your pension.
If you're not sure about your options at retirement you should seek appropriate guidance or advice.
Speak to a financial adviser
Nothing on this site is personalised advice or a recommendation. If you need a personalised recommendation based on your personal circumstances, you should seek financial advice. We can't give you advice but we can put you in touch with an adviser who can talk to you about which financial products or investments may be right for you.
Call a member of our team on
0800 533 5195
Monday to Friday - 9.00am - 5.00pm
For our joint protection, we may record our telephone calls. Calls are free from a BT land line. Costs may vary from mobiles and other networks.
Alternatively, you can visit www.unbiased.co.uk to find an adviser in your local area
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