Investing in with-profits funds means investing in a combination of shares, bonds, property and money market investments. Growth can come in the form of regular and final bonuses from the profits the fund might make. For the latest bonus announcement, click here.
Our with-profits investments
With-profits policies are designed for the medium to long term, ideally at least 5 to 10 years. We pool your money with that of other customers in one of our with-profits funds and that money is invested in a mixture of shares, bonds, property and money market investments.
The value of your with-profits investment can grow through the addition of yearly bonuses and, for most policies, there is the possibility of a 'final' bonus when your policy comes to an end. Bonuses are not guaranteed and bonus rates can go down as well as up. However, once added they can't be taken away. There is a risk that the value of your investment could go down as well as up and you may get back less than you invested.
With profits investment returns are shared out as bonuses, of which there are two main types, regular (or annual) bonus and final (or terminal) bonus.
Regular bonuses can be added to your policy each year (or more often). Many with-profits policies guarantee a minimum payout on specified dates or events and the addition of regular bonuses increases this minimum level of payout.
A final bonus may be added when you decide to cash-in your policy or if you move out of with-profits by switching to another fund.
A Market Value Reduction (MVR) can apply to some types of with-profits funds. An MVR is an adjustment factor that can be applied to those leaving a with-profits fund at times other than those specified in the contract. This ensures that those leaving the fund do not receive more than their fair share of the underlying investment, and therefore enables us to treat with-profits customers fairly.
How we manage the funds
To help you understand how we manage the with-profits fund in which you’re invested, we produce two types of guides.
These guides can be downloaded from our With-profits useful guides page.
There are technical guides called the Principles and Practices of Financial Management (PPFM) and there are simplified, more reader-friendly versions.
Independent expertise and oversight
We're committed to treating our customers fairly at all times. To support this, we have a With-Profits Committee which brings independent expertise and oversight, to ensure fairness is fully considered in our with-profits decision making.
Looking to apply?
Visit our Select Investment page for more information about the product.
Select Investment articles
Take a look at our latest news and guides.
18 May 2018
How to use your home to fund your retirement
Find out if downsizing, taking in a lodger or equity release could help to pay for the retirement you have planned.
17 May 2018
Budgeting for retirement
Four lifestyle changes to prevent your pension pot draining.
5 Mar 2018
Choosing a destination: cost of living, buying a property and healthcare.
1 Mar 2018
The costs of retiring abroad
We’ve compared the cost of living in the 3 top European destinations for UK retirees.
11 Feb 2018
How long will your retirement be?
Estimate the length of your retirement so that you can make the right preparations for the life you want to have when you stop working.
6 Feb 2018
When do annuities make sense?
Annuities can provide a stable income for your retirement, but they aren’t the only option. Find out if they’re the right choice for you.
23 Jan 2018
Risks and rewards of investing
Our guide to the pros and cons of different types of investments.
23 Jan 2018
How to invest money in your 50s
Our guide to reviewing your investments as you think about retirement.
23 Jan 2018
Investing for beginners
Our guide to getting started in the world of investments.
23 Jan 2018
How to invest money in your 60s
Tips for managing your investments if you're thinking of retiring.
23 Jan 2018
How to invest money in your 40s
Tips for managing your money as your career and family grow.
21 Jan 2018
How the State Pension works
Understand when you can claim the State Pension and how much it’s likely to be to start planning for a secure and happy retirement.
11 Jan 2018
Retirement and divorce
If your relationship ends in divorce or annulment, your retirement savings can be shared or split. Take a look at what this could mean for you.
10 Jan 2018
Can't afford to retire?
Find out how you could fix gaps in your retirement finances to give you the security and certainty you want.
Product provided by: Aviva Life & Pensions UK Limited. Registered in England No. 3253947. Registered office: Aviva, Wellington Row, York, YO90 1WR. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number: 185896.
Aviva UK Digital Limited introduces to Aviva Life & Pensions UK Limited for investments. Aviva UK Digital Limited is registered in England No. 09766150. Registered office: St Helen's, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number: 728985.