As a with profits customer, you should consider the following:

Switching investments

  • The value of any part of your pension pot invested in with profits may be subject to the application of a market value reduction. For more information, see our Understanding Market Value Reductions (PDF: 48KB) factsheet.
  • If your plan has any guaranteed minimum additions such as Contractual Annual Interest or Contractual Minimum Addition, you may get a lower investment growth rate from the fund that you switch into. You can see if either of these applies to your plan by checking your annual statement or plan documents.
  • You may be giving up valuable guarantees such as a guaranteed annuity rate.

Details can be found in your plan documents.

Transferring the value of your pension pot

  • The value of any part of your pension pot invested in with profits may be subject to the application of a market value reduction. For more information, see our Understanding Market Value Reductions (PDF: 48KB) factsheet.
  • If your plan has any guaranteed minimum additions such as Contractual Annual Interest or Contractual Minimum Addition, you may get a lower investment growth rate from the plan that you transfer into. You can see if either of these applies to your plan by checking your annual statement or plan documents.
  • You may be giving up valuable guarantees such as a guaranteed annuity rate.
  • You may lose life insurance and payment protection cover that are built into your plan.
  • There may be charges that apply to your plan on transfer.

Details can be found in your plan documents.

Accessing your pension pot before your selected retirement date

  • The value of any part of your pension pot invested in with profits may be subject to the application of a market value reduction. For more information, see our Understanding Market Value Reductions (PDF: 48KB) factsheet.
  • You may be giving up valuable guarantees such as a guaranteed annuity rate.
  • You may lose life insurance and payment protection cover that are built into your plan.
  • There may be charges that apply to your plan if you access your pension pot before your selected retirement date.
  • If your plan allows Flexi-Access Drawdown you will need to switch out of with profits before you take this option.

Details can be found in your plan documentation.

If you need help understanding any of this information, please speak to your adviser.