Risk factors

All investments carry an element of risk.  Please bear these points in mind:

• The value of the units which make up a fund can go down as well as up, so the value of a member's fund is not guaranteed. It is particularly important to remember this if the member is close to retirement. Please remember that the money is tied up until a member takes their retirement benefits.
• The amount of pension income provided by a retirement fund will depend on a number of things, including investment returns and the rates available to buy a pension when a member takes this benefit.
• The fund or funds a member chooses to invest in will have specific risks. For more information on the risks, please speak to a financial adviser or Legal & General contact.
• If the member invests in a fund that invests in property, it may be necessary to defer encashment of units during periods when a property is not easily sold. The maximum delay is six months. The value of the property is generally a matter of the valuer's opinion rather than fact.
• Different funds have different levels of charges. If the member switches funds at some point in the future, they may end up paying higher charges, which in turn, may affect the benefits payable from the policy.
• The law and tax rates may change in the future and the value of tax relief will depend on the individual's circumstances.
• Past performance is not an indicator of future performance.
• If there is a decision to cancel within the 30 day cancellation period, the refund may reflect any reduction in investment value.

If you are an employee:

• What you receive from With Profits investments will depend on future bonus rates, which are not guaranteed and can change. Future bonus rates may be reduced if, for example, our expenses are higher than anticipated or there is an increase in the expected cost of guarantees and options for With Profits policies.
• Any investment in With Profits will share in the risks of other With Profits pension plans, which can reduce your bonuses and therefore the amount we pay you. You also share in the risks of other With Profits policies such as bonds.
• We write With Profits and non profit policies in our Long Term Fund.  We provide guarantees for both With Profits and non profit policies and the assets in the whole fund are ultimately available to meet them. This means that, although you may benefit from support from the assets backing non profit business, we could reduce the amount we pay you if we have to use the assets backing With Profits business to support non profit business.
• We may reduce the amount we pay if you take your benefits early, transfer or switch out of With Profits. This is called a Market Value Reduction. We use the Market Value Reduction to treat customers who stay in With Profits fairly, as well as those who withdraw from it. The Market Value Reduction will usually be applied when investment conditions have been insufficient to support bonuses. It will also account for additional deductions that may be required to cover the cost of guarantees and options for With Profits policies.
• We can increase our charges, but will let you know before we make any change.