Frequently Asked Questions

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You asked: What is a market value reduction?

Market value reductions are a way of making sure that customers remaining in the With-Profit Fund are not disadvantaged when others leave.

A market value reduction is most likely to apply following a large or sustained fall in the stock market or when investment returns are below the level we would normally expect. We apply a market value reduction to make sure that all investors receive their fair share of the returns earned over the period of their investment. If one applies when you withdraw your money from the fund, it may mean that the value of your investment is lower than expected.

If you keep your money invested in the With-Profit Fund until the retirement date you originally chose or your death we will not apply a market value reduction. However, we may apply a market value reduction at your originally selected retirement date if any of the following apply:

You started your plan within 5 years of your original retirement date
You have made any new one-off investments or increased your regular contributions (except those automatic increases which have been agreed by us) within 5 years of your original retirement date
You switched into the With-Profit Fund within 5 years of your original retirement date
Please refer to your policy terms and conditions for further details.

We can't guarantee the amount you will get back if you move out of the With-Profit Fund before or after your originally selected retirement date.

You can find further details about the With-Profit Fund and market value reductions in 'A guide to your with-profits investment and how we manage our With-Profit Fund - for customers investing through pension plans', which is available at

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