Scottish Widows follows trend, cuts bonus rates

Policyholders with Scottish Widows have been told their bonus rates are being cut as the company struggles with the implications of three years of falling equity returns. The cuts follow a similar announcement from competitor Aviva earlier this week. Scottish Widows' chief executive Mike Ross says the cuts are needed to ensure the stability of the with profits fund, and to ensure a fair balance between the needs of those who need payments now and in future. Still, the cuts are swingeing. Holders of policies linked to the Growth Fund with profits bond fund have se...