Phoenix Life Traditional With Profits
The default investment strategy for policy number 003396
This is the default where members have been invested from February 1978 until April 1984.
The default strategy is designed for members who want:
- The option to take 25% of their fund as a lump sum.
- To buy a guaranteed income for life with the rest of their pension savings through buying an annuity using the guaranteed annuity rate available.
The default strategy aims to:
- achieve long-term growth by using an investment fund that invests in a diverse range of assets.
- secure a guaranteed value at normal retirement date, which increases over time by the addition of bonuses.
- Provide a valuable guarantee when accessing benefits – known as a guaranteed annuity rate. This allows you to buy a pension income from Phoenix Life at a rate significantly better than normally available.
How does it do this?
How does it do this?
- By pooling your money together with the premiums of the other policyholders who invest in this fund. The contributions made secure a guaranteed value at your normal retirement date, which increase over time by the addition of an annual bonuses.
- The level of bonus will change depending on investment conditions and Phoenix Life may also pay a final bonus when benefits are paid, but this will depend on the performance of the fund and is not guaranteed.
- Guaranteed annuity rates are available where written into the terms of the policy.
The default investment arrangement uses the following underlying funds
| Name | Assumed investment growth above inflation, before charges | Costs and charges met by members |
|---|---|---|
| Phoenix Life Traditional With Profits | -1.50% | -0.0024% |
Information on the figures and assumptions used can be found in the behind the scenes section.
The illustrations in this table assume that members are wholly invested in the default strategy.
This is the investment strategy that is used by all members in policy number 003396.
| Years from taking benefits | Projected pension savings if the fund had a 0% charge | Projected pension savings using the fund’s current charge |
|---|---|---|
| 0 | £20,000 | £20,000 |
| 1 | £19,707 | £19,600 |
| 5 | £18,579 | £18,076 |
| 10 | £17,259 | £16,338 |
| 15 | £16,032 | £14,766 |
| Years from taking benefits | Projected pension savings if the fund had a 0% charge | Projected pension savings using the fund’s current charge |
|---|---|---|
| 0 | £100,000 | £100,000 |
| 1 | £98,537 | £97,998 |
| 5 | £92,894 | £90,381 |
| 10 | £86,293 | £81,688 |
| 15 | £80,161 | £73,830 |
When we show figures
When projecting pension savings, we show the value in today’s terms, which means we have already taken into account the impact that inflation may have on the buying power of those pension savings. Some funds may not be expected to grow as much as inflation and so the buying power of those pension savings would be expected to go down over time.
Inflation is assumed to be 2.5% each year.
As the scheme is closed to new contributions, these illustrations assume no further contributions will be paid.
Values shown are estimates and are not guaranteed.
The expected growth rates and charges assumed are those set out in the Behind the scenes section.
Below are the different funds and the investment return and charges we’ve assumed in our example scenarios. A list of the funds available in the scheme and their charges can be found in the What funds are available page.
| Fund/Strategy Name | Assumed investment growth above inflation, before charges | Costs and charges borne by members | Why have we used this fund in our examples? |
|---|---|---|---|
| Phoenix Life Traditional With Profits | -1.50% | 0.0024% | Used in the default fund |
| Phoenix Life Unitised With Profits | -0.50% | 0% | Used in the default fund |
| Phoenix Life Managed Fund | 1.50% | 0.1737% | Highest return / standard scheme charge |
| Phoenix Life Cash Deposit | -2.00% | 0.0013% | Lowest return / standard scheme charge |
These figures are based on
- Phoenix Life have been unable to produce SMPI assumptions as at 30 June 2023, as such the Trustees have used the SMPI assumptions as at 30 June 2022, and will continue to work with Phoenix Life to produce updated illustrations.
- Information on charges provided by Phoenix Life up to 30 June 2023.
- Assumptions as to how your pensions savings may grow, which are the same as those used in the annual benefit statements sent to members for 2023.
- Some funds (Traditional With Profit funds) do not explicitly state the charges so we have not been able to incorporate these into the illustrations. However the growth rates used do take into account that investment returns are calculated after any charges have been deducted.
Behind the scenes
To show the impact charges could have on your pension savings over time we have prepared a number of illustrations based on some example scenarios.
The Trustee(s) have produced these illustrations in line with February 2018 guidance from the Department for Work &
Pensions to help members understand the costs and charges that apply to their pension savings.
Read on to find out more about what goes into these illustrations, including how we’ve calculated the figures and the assumptions we’ve used.
Funds and example scenarios
Read on to find out more about the funds available and their charges as well as look at the impact the charges may have based on some example scenarios.
Investment performance cannot be guaranteed and fund values can go down as well as up. If you are thinking about changing the fund (s) you are invested in, or would like more guidance around the options available to you, we recommend that you seek advice from an Independent Financial Adviser (IFA).