Standard Life has lowered 600,000 savers' with-profits bonus rates for 2013 as its Heritage fund saw an overall return just shy of 8%.
It said the fund returned 7.9% and plans had seen a real increase in value from last year.
Unitised life plans will see bonus rates drop from 0.75% to 0.5% and unitised pension plans from 1% to 0.5%. The life and pensions firm said with profits bonds would see a 2.5% bonus rate, the same as last year.
A spokeswoman said 600,000 people would be affected and the decision was taken to give the business greater investment flexibility.
Margaret Flaherty, Standard Life's with-profits communications manager, said: "In the last year a typical pension customer has seen a return of 7% on their plan while a typical endowment customer has seen a return of 5% - every customer is contacted individually with updated information on their plan."
Oversees £30bn of advised and D2C assets
£1bn business since inception
Considered doing so in 2015
Client communication considerations
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