With-Profits Annual Bonus Rates
New With-Profits annual bonus rates effective 1st April 2024
Bonus on your With-Profits Fund
There are two types of bonus which may be added to a With-Profits Fund investment. An annual or reversionary bonus may be added every year, although it can be more frequent depending on market conditions. A terminal or final bonus may be added at maturity, surrender, or upon death or when the money is moved out of the With-Profits Fund.
Annual Bonus Rates from 1st April 2024
Our solvency position continues to be strong, therefore we were able to declare, as annual bonus for 2023, the interim rates in force over 2023.
Interest rates increased over 2023 and future returns expected from the With-Profits assets have risen. As a result, the majority of the interim bonus rates have increased.
How are annual bonuses added to contracts?
For conventional With-Profits Fund business, the bonus is added as a percentage addition to the basic sum assured (or pension) plus attaching bonuses. For unitised With-Profits Fund business annual bonuses are added in two ways. Depending on the type of policy bonuses are added by either increasing the price of the With-Profits Fund units each day or by adding additional With-Profits Fund units to the policy. A combination of the methods is used for those Personal Pension Plan and Capital Investment Bond policies that have a guaranteed minimum bonus rate.
The Annual Bonus Rates in More Detail
Your annual statement will provide you with the information to identify your product and the fund series that you are invested in. For Whole of Life policies, the bonus rate depends on the policy commencement date, which is stated on your policy schedule.
| Product | 2022 Declared | 2023 Interim | 2023 Declared | 2024 Interim |
| Life Fund | ||||
| Endowments | 2.00% | 2.75% | 2.75% | 3.50% |
| Whole of Life - Entry date before 1983 | 2.25% | 3.00% | 3.00% | 4.00% |
| Whole of Life - Entry date from 1 January 1983 - 18 January 2004 | 0.25% | 1.25% | 1.25% | 2.25% |
| Whole of Life - Entry date from 19 January 2004 onwards* | 0.25% | 0.25% | 0.25% | 0.25% |
| Capital Investment Bond - Series 1 | 3.50%* | 4.25%* | 4.25%* | 5.50%* |
| Capital Investment Bond - Series 2 | 2.75% | 3.50% | 3.50% | 4.75% |
| Flexibond - Series 1 | 3.50% | 4.25% | 4.25% | 5.50% |
| Flexibond - Series 2 | 3.50% | 4.25% | 4.25% | 5.50% |
| Flexibond - Series 3 | 2.50% | 3.25% | 3.25% | 4.50% |
| Flexibond - Series 4 | 1.75% | 2.25% | 2.25% | 3.00% |
| Flexibond - Series 1A | 1.75% | 2.25% | 2.25% | 3.00% |
| Flexibond - Series 2A | 1.75% | 2.25% | 2.25% | 3.00% |
| Flexibond - Series 3A | 1.75% | 2.25% | 2.25% | 3.00% |
| Vintage Bond - Series 1 & 2 paying for guarantee | 3.50% | 4.00% | 4.00% | 4.25% |
| Vintage Bond - Series 1 & 2 opted out of guarantee | 2.50% | 3.25% | 3.25% | 3.50% |
| Impaired life annuities in payment (Structured settlements) | 12.60% | N/A | 8.90% | N/A |
Rates quoted for Flexibond and Vintage Bond are before deduction of the annual management charge (AMC). The AMC is applied after the addition of the bonus quoted in the table and effectively reduces the bonus rate quoted.
Rates quoted for Capital Investment Bond (CIB) are after allowance for the AMC.
*For the majority of policies, the annual bonus rate is based on the entry dates above which is stated on your policy schedule. Please contact us if you would like to check the bonus rate on your policy.
**Rates for Capital Investment Bond Series 1 are inclusive of the guaranteed minimum rate of 3%.
| Product | 2022 Declared | 2023 Interim | 2023 Declared | 2024 Interim |
| Pension Business Fund |
||||
| Conventional With-Profits Fund pensions | ||||
| Deferred Annuities | 0.00% | 0.00% | 0.00% | 0.00% |
| Pure Endowments | 0.00% | 0.00% | 0.00% | 0.25% |
| With-profits annuities in payment | 12.60% | N/A | 8.90% | N/A |
| Accumulating With-Profits Fund pensions | ||||
| Personal Pension Plan (PPP) - Series 1 | 4.25%* | 5.00%* | 5.00%* | 6.25%* |
| Personal Pension Plan (PPP) - Series 2 | 3.00% | 3.75% | 3.75% | 5.00% |
| With-Profits PPP - Series 3 | 2.50% | 3.25% | 3.25% | 4.50% |
| Personal Pension Account - Series 4 | 2.00% | 2.75% | 2.75% | 4.00% |
| Select Pension Plan With-Profits Risk Level 2 | 1.50% | 1.50% | 1.50% | 2.75% |
| Select Pension Plan With-Profits Risk Level 3 | 2.00% | 2.00% | 2.00% | 3.25% |
| General Annuity Fund | ||||
| Agents’ pension arrangements | 2.00% | 2.75% | 2.75% | 3.50% |
| ISA Fund | ||||
| Shrewd Savings Plan ISA - Series 1 | 3.75% | 4.50% | 4.50% | 5.75% |
| Shrewd Savings Plan ISA - Series 2 | 3.75% | 4.50% | 4.50% | 5.75% |
| Shrewd Savings Plan ISA - Series 3 | 2.75% | 3.50% | 3.50% | 4.75% |
| Shrewd Savings Plan ISA - Series 4 | 2.00% | 2.50% | 2.50% | 3.75% |
| Shrewd Savings Plan ISA - Series 1A | 2.00% | 2.50% | 2.50% | 3.75% |
| Shrewd Savings Plan ISA - Series 2A | 2.00% | 2.50% | 2.50% | 3.75% |
| Shrewd Savings Plan ISA - Series 3A | 2.00% | 2.50% | 2.50% | 3.75% |
Rates quoted for the Personal Pension Account (Series 4), the Select Pension Plan and the Shrewd Savings Plan ISA are before deduction of the annual management charge (AMC). The AMC is applied after the addition of the bonus quoted in the table and effectively reduces the bonus rate quoted.
Rates quoted for Personal Pension Series 1, 2 and 3 are after allowance for the AMC.
*Rates for Personal Pension Plan Series 1 are inclusive of the guaranteed minimum rate of 4%.
Capital Access Bond: Investment Bands
| With effect from | £5,000 - £24,999 | £25,000 - £49,999 | £50,000 - £99,999 | £100,000 - £249,999 | £250,000 - £499,999 | £500,000+ |
| 1 January 2023 - 26 February 2023 | 1.20% | 1.80% | 2.15% | 2.30% | 2.45% | 2.50% |
| 27 February 2023 - 26 March 2023 | 1.60% | 2.20% | 2.55% | 2.70% | 2.85% | 2.90% |
| 27 March 2023 – 23 April 2023 | 2.10% | 2.70% | 3.05% | 3.20% | 3.35% | 3.40% |
| 24 April 2023 - 6 August 2023 |
2.30% | 2.90% | 3.25% | 3.40% | 3.55% | 3.60% |
| 7 August 2023 - 1 October 2023 | 2.60% | 3.20% | 3.65% | 3.80% | 3.95% | 4.00% |
| 2 October 2023 - 1 September 2024 | 2.80% | 3.40% | 3.85% | 4.00% | 4.15% | 4.20% |
| 2 September 2024 onwards | 2.60% | 3.20% | 3.65% | 3.80% | 3.95% | 4.00% |
