Scottish Widows has revamped its unitised annuity, income drawdown and phased retirement plans to of...
Scottish Widows has revamped its unitised annuity, income drawdown and phased retirement plans to offer customers more flexible options.
With immediate effect all unitised annuity rates will increase by 1% and at the same time initial commission will be increased from 1% to 1.5%. At the same time Scottish Widows' annual management fee increases from 0.875% to 1%.
A guaranteed minimum income will also be applied to all unitised annuity investments into the with-profits fund. Prior to the change, there was no floor in the amount by which the income from the with-profits pension annuity could fall.
Ian Naismith, pension strategy manager at Scottish Widows, said: "The other change to the annuity is that investors now have the option to switch from a with-profits to a traditional annuity without incurring a charge."
At the same time the SW Environmental Fund, a rebranded Lloyds TSB unit trust, will be available for investment by unitised annuity applicants.
The allocation rates for Scottish Widows income drawdown and phased retirement will be increased from 22 May.
For amounts of £50,000 to £74,999, the current allocation will be increased from 97% to £98%. For amounts of £75,000 to £99,999, the allocation rate will increase from 98% to 99% and for £100,000 to £249,999, the allocation rate increases from 99% to 100%.
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