Standard Life customers will in future have to pay a cost for policies with guarantees to reflect the increased reserves the company must set aside, according to statements in the 2003 annual results published today.
Size of those reserves are yet to be finalised in accordance with future FSA guidance on stochastic modelling. However, the cost of the deductions will be included in Standard Life policy illustrations, in line with the estimates published in the results today. Products Deduction % Stakeholder pension N/A With profits bond 0.25 With profits pension annuity 0.25 Homeplan (most mortgage endowments taken out since 1992) 0.5 Pensions with min growth rate 0% per year (most investments made since April 2001 on plans taken out since July 1988) 0.5 Versatile investment plans (...
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