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 they are close to retirement. Please remember that the money is tied up until a member takes their 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 your Legal & General contact. .
• 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.
• We can increase our charges, but will let you know before we make any change.
• If there is a decision to cancel within the 30 day cancellation period, the refund may reflect any reduction in investment value.
  

Additional risks applicable to investments in With Profits

• 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 or investment performance is less than expected
• 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 (that is policies which are not eligible for bonuses) in our With Profits 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 a member takes their benefits early, transfers or switches out of With Profits. This is called a Market Value Reduction. We use the Market Value Reduction to ensure fairness between policyholder who leave the fund and those who remain in it. This aims to ensure that remaining policyholders are not disadvantaged. A 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.