£10k wiped off with-profits pensions - Widows

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An average male coming up to retirement who has invested in a Scottish Widows with-profits personal pension policy over 20 years will see £10,000 wiped off the value of his fund compared to the same time last year.

Turbulent global markets have had a big impact of the £14bn With-Profits fund which was down 17.5% over 2008. This fall in fund value will have seen thousands of pounds knocked off individual policies. For example, a male investing £200 a month into a with-profits personal pensions policy for 20 years, ending one month before retirement at age 65 on 1 January 2009, will take a £10,582 hit. His policy value will have been reduced from £85,722 on 1 January 2008 to £75,140 this year. Regular bonus rates for the majority of unitised with-profits policies have also been reduced from those set ...

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