Standard Life has cut its terminal bonus rates, resulting in reductions on maturity payouts of aroun...
Standard Life has cut its terminal bonus rates, resulting in reductions on maturity payouts of around 10%.
The mutual blamed a 'sustained period of falling and volatile equity investment markets' for the cuts.
Early surrender policies will suffer a further cut of around 10%, the mutual said, as well as a reduction in terminal bonuses. The cuts do not apply to payments on maturity, retirement or in the event of death.
Standard Life said the decision is not the result of any deterioration in its financial position.
'For us to have kept pay-outs at the same level we would have to have seen positive returns on the with-profits fund,' said David Hare, head of with-profits communication.
The actual return on the Standard Life with-profits fund from the start of the year until the end of June was -5.2%.
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