Frequently Asked Questions

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You asked: How do you decide what my additional bonus is?

If you're a With Profits Pension Annuity customer

The additional bonus will vary depending on the year you purchased your annuity and how the With-Profit Fund has performed since then.

When we set the additional bonus rate, we take into account many of the same factors that we do for the regular bonus. However, we put greater emphasis on the profits earned in the planholders' share of the fund over recent years. Over the lifetime of the contract, the amount we aim to pay planholders will, on average, be a similar amount to the contributions paid plus the profits earned in the planholders' share of the fund. We use the additional bonus to share out this money. The additional bonus rate will be smoothed annually because we expect planholders to prefer a steady income to one which fluctuates from year-to-year.

Although we aim to protect planholders from market fluctuations, our ability to do this depends on the profits earned over a number of years. This means we can't guarantee this aim.

If you're a With-Profit Income Fund customer (this fund is no longer available)

If regular bonuses are low, we may pay an additional bonus to supplement your income. An additional bonus is not necessarily paid every year, and may change from year-to-year. As with other bonus rates, we review the additional bonus at least once a year, but may do this more frequently. As bonus rates can vary, the level of income you receive can also vary over time. However, if you have chosen a fixed income, the amount you receive will remain the same until you ask us to change it. Your yearly statement tells you our current bonus rates.

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