Scottish Widows says an improvement in the performance of its with-profits funds means the life insurer has cut MVRs and will continue to pay bonus rates of 1% and 1.5% on its unitised flexible investment bond and pension policies.
A statement issued yesterday by >Scottish Widows suggest final bonuses, effect January 1, 2005, on the Flexible Options Bond will be 5% on the Flexible Options growth bond while the income version will pay 3.5-4.5% on the back of yields ranging between 5.75% and 10.75% per annum.
Elsewhere, the market value reduction (MVR) rate applied to policies being withdrawn from the with-profits fund has now fallen to an average MVR of 5% on unitised with-profits pension policies and unitised with-profits assurance policies – compared with an average of 10% at the end of 2003 - thanks to a partial recovery of the stock market.
Conventional with-profits life and pension policies (only those affected after 1999) will continue to receive payouts of just 0.5% basic guaranteed plus 0.5% of existing bonus CWP pension policies prior to 1999 will still receive nothing.Payouts on international investment bonds will continue at the same rate as announced for July 1, 2004.IFAonline
Encouraging better use of tech
Win one of three £20 Amazon vouchers
Vanguard's multi-asset range
Replaces Lesley Titcomb
Through TVC & APTA module