Standard Life is cutting this year's bonus rates on with-profits policies by an average of 8% at a c...
Standard Life is cutting this year's bonus rates on with-profits policies by an average of 8% at a cost of £1.7bn, however, their rate cuts are still much lower than those announced recently by Scottish Widows and CGNU.
Officials at the Scottish life insurer openly admit last year's stock market returns were poor as the with-profits funds lost 10.2% , yet another 250,000 new with-profits policies were signed and Standard Life now has 2.1 million with-profits members.
Reversionary bonus rates remain unchanged on endowments and whole of life plans at 22.25% on sum assured policies and 3.5% on attaching bonuses, however, total growth rates for unitized plans have been reduced from 4.5% to 4% and interim bonus rates have been reduced to 2% sum assured with 3.25% on attaching bonuses.
Individual pensions have also seen a cut in the unitized policies' total growth rates from5.5% to 5% yet reversionary bonus rates remain unchanged at 3% of sum assured and attached bonuses. Interim bonuses rates have been reduced to 2.75%.
Reversionary bonuses run for the year to 15th November 2001, while interim rate are paid from 16th November 2001.
Under these calculations, a male paying £200 per month in a pension over 25 years and retiring at 65 is predicted to receive a total fund of £656,645 rather than the £698,991 he would have received last year.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week