How can I find out more information about my yearly pension statement?Tue May 09 11:21:00 BST 2017 Back to results
From time to time we need to make changes to yearly pension statements. This may be in response to government or legislative changes, or because we're looking to improve the way we tell you about how your pension is doing. You can find out more about the recent changes below.
Depending on the product you have, not all changes may be relevant to you.
1 June 2018
As part of our commitment to keep our customers better informed, if you have a Section 32 or a Trustee Proposed Section 32 product with guaranteed minimum pension, we’re now sending you a yearly statement summarising how your policy is doing.
Guaranteed minimum pension (GMP) is a defined benefit. This means it is a specific amount of pension and is payable at age 60 for females and 65 for males.
What’s included in the statement?
All statements will include a current fund valuation, a breakdown of the annual charges and details of the GMP.
If you’re over the age when GMP is normally taken (60 for females and 65 for males), we’ll send you a letter instead of a statement. The letter will confirm your GMP payable at 60/65.
There are regulations that govern the payment of your GMP. When your GMP comes into payment, the actual amount payable will depend on when you take your benefits.
10 August 2017
We’ve created new sections in your statement to show you the main charges, and any rebates, in monetary figures, so you'll now see these as £s and pence.
Find out more about why we're making these changes.
31 March 2017
If you're aged 55 or over and are looking to take or transfer your pension benefits and have a surrender charge, the charge will be capped at 1% of the value of your benefits being taken or transferred.
19 November 2016
- if you're invested in a With-Profits fund that has guarantees, we take these into account when calculating the benefits shown in the illustration part of your statement;
- use the links below to find out how this impacts the projection rates we use in the illustration.
- your plan value within your statement summary includes a terminal bonus and a market value reduction (if applicable);
- the breakdown of your plan values within the 'in detail' section of your statement shows the terminal bonus and a market value reduction included in the plan value; and
- the calculations to get the retirement fund value and yearly pension figures shown within the illustration part of your statement, include the current level of terminal bonus and market value reduction.
Find out more about with-profits.
From 19 November 2016, if you're invested in a With-Profits fund that has guarantees, the growth rates used for the illustration in your statement takes these into account.
We only show growth rates adjusted for inflation within our statements and key features. There are a few exceptions where this is optional, for example drawdown pensions. We've also reduced the maximum growth rates we use.
We've made these changes to meet new regulations from the Financial Conduct Authority, the Department for Work and Pensions and the Financial Reporting Council which came into force for all providers on 6 April 2014.
Inflation is a persistent increase in the price of goods and services over a period of time meaning that as costs go up the pound in your pocket buys less. When we give you an illustration of the pension you could get in the future, we take inflation of 2.50% a year into account. This shows you how it could affect your pension savings, investments and what your future pension could be in ‘today's’ money.
Find out more about how these changes may affect your pension or investment.