Provider Scottish Widows Product Income Drawdown Plan (Single Price Option) Type Personal ...
Income Drawdown Plan (Single Price Option)
Product distributed through IFAs
Commission basis of this product option
3% initial commission plus 0.5% fund based renewal commission.
Minimum age attained at entry
The minimum age is 35.
Maximum age attained at entry
The maximum age is 74.
There is no minimum term.
Minimum initial fund value (£)
The initial minimum transfer payment is £50,000 (including any cash to be taken immediately) including any Protected Rights or GMPs. Subsequent investments are subject to a minimum of £30,000 and must go into a separate policy. Phased Retirement to be transferred to income drawdown:
Minimum Initial Investment in Phased Plan - £150,000 Minimum First Transfer to Drawdown - £ 25,000 Minimum Subsequent Transfers to Drawdown - £ 10,000
Policy fee (£ per month)
There is no policy fee.
One-off installation fee (£)
There is no installation fee.
Initial charge incorporated in the bid/offer spread
There is no bid/offer spread.
Annual fund management charge for internal fund links (% per annum)
An annual management charge of 0.875% per annum is reflected in the unit price.
Additional fund management charge for external fund links (% per annum)
The additional annual management charge for external fund links ranges from 0.15% to 0.95%. Please note that there may be further underlying charges which may apply in addition to these additional AMCs. These charges include auditor's, registrar's, trustee's and regulator's fees and may be reviewed from time to time. These charges currently range from 0.02% to 0.34% and are detailed in the Key Features.
Total AMC Range (% per annum)
The total annual management charge ranges from 0.875% to 1.825%.
Charge applied when drawdown commences (£)
There is no charge applied for setting up the drawdown. There is a charge, currently £50, for changing the amount or frequency of regular withdrawals between review dates, taking a second or subsequent (ad hoc) withdrawal in a single plan year, or requesting an updated illustration in addition to the yearly one provided.
Allocation rates (%)
£50,000 to £74,999 96.88%
£75,000 to £99,999 97.83%
£100,000 to £149,999 98.78%
£150,000 to £249,999 98.78%
£250,000 plus 98.78%
These allocation rates are based on 3% initial commission plus 0.5% fund based renewal commission. Commission may be sacrificed for enhanced allocation rates on a 1 for 1 basis.
Number of fund links available
There are 79 funds links available.
Unit linked insurance funds available
Mixed Fund International Fund Equity Fund Property Fund Indexed Stock Fund Fixed Interest Fund Building Society Fund UK Equity Index Fund Consensus Mixed The European Fund The North American Fund The Japanese Fund SafetyPlus Pension Fund Environmental Pension Fund Global Equity Pension Fund Fixed Interest Tracker Fund All Share Tracker Fund Investment Solutions Package: SW Artemis UK Growth SW Artemis UK Smaller Companies SW Deutsche American Growth SW Deutsche Europa SW Deutsche Japan Growth SW Deutsche Stockmarket Managed SW Deutsche UK Growth SW Fidelity American SW Fidelity American Special Situations SW Fidelity European SW Fidelity International SW Fidelity Japan SW Fidelity Managed SW Fidelity South East Asia SW Fidelity UK Growth SW Fidelity UK Special Situations SW Gartmore Managed SW INVESCO Perpetual Corporate Bond SW INVESCO Perpetual European Growth SW INVESCO Perpetual European Smaller Companies SW INVESCO Perpetual Global Bond SW INVESCO Perpetual High Income SW INVESCO Perpetual Japan SW INVESCO Perpetual UK Key Trends SW INVESCO Perpetual US Growth SW JPMF Managed SW Merrill Lynch American Opportunities SW Merrill Lynch Emerging Markets SW Merrill Lynch European Growth SW Merrill Lynch Global Titans SW Merrill Lynch Managed SW Merrill Lynch UK Dynamic SW Merrill Lynch UK Smaller Companies SW Newton Continental European SW Newton Higher Income SW Newton Income SW Newton International Bond SW Newton International Growth SW Newton Managed SW Newton Oriental SW Newton Stockmarket Managed SW Perpetual Balanced Managed SW Schroder European SW Schroder Gilt & Fixed Interest SW Schroder Managed SW Schroder Medical Discovery SW Schroder Pacific SW Schroder Tokyo SW Schroder UK Equity Growth SW Schroder UK Smaller Companies SW Schroder US Smaller Companies SW SocGen European Growth SW SocGen Technology SW SocGen UK Growth SW Threadneedle American Select Growth SW Threadneedle European Select Growth SW Threadneedle Global Select Growth SW Threadneedle UK Corporate Bond SW Frank Russell Opportunities Portfolio SW Frank Russell Progressive Portfolio SW Frank Russell Balanced Portfolio SW Frank Russell Cautious Portfolio
External Fund Links available
Scottish Widows' Investment Solutions (see 'Unit linked insurance funds available').
Index Tracker/Passive Managed funds available
Ethical/environmental fund links available
Equity linked funds with a guarantee available
Self investment facility available
Maximum number of links
The maximum number of fund links is 10.
Minimum premium per fund
There is no minimum premium per fund.
Number of free switches per year
Six fund switches in each year are free of charge.
Charge per fund switch (£)
Six fund switches in each year are free of charge. Thereafter, switches are charged at 0.5% of the fund subject to a maximum of £50 and a minimum of £20.
Minimum residual fund after switching (£)
There is no minimum residual fund.
Permitted frequencies for income withdrawal
Regular income withdrawals may be made monthly or yearly and ad hoc withdrawals may be made at any time.
Income withdrawal from specific funds
Terms on early retirement
The annuity may be purchased at any time but must be purchased before age 75.
Death benefit basis
On death before an annuity is purchased the then remaining fund will be available to purchase benefits for the member's dependants in accordance with Inland Revenue rules.
Phased retirement permitted
The plan has 1,000 arrangements to facilitate the phased withdrawal of retirement benefits. The link from phased retirement to income drawdown will be on a bid to bid basis, i.e. there will be 100% allocation applied on transfer.
Alternative commission shapes available
Initial commission expressed as a percentage of the contribution invested after tax-free cash is available. Some or all may be given up to the benefit of the plan. Initial Commission of up to 5.4% is available. Commission may be sacrificed for enhanced allocation rates on a 1 for 1 basis. Fund based renewal commission is payable monthly or annually, and commences on the first anniversary of the contract if initial commission is paid. A rate is chosen at outset from 0.1% to 1.0% in steps of 0.1%. Each payment is calculated as a percentage of the bid value of the units. Also, there is the choice to fund FBRC either via an explicit charge to the client's fund each year or via a reduced allocation rate at outset with no additional annual charge.
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