Please note the options of taking benefits via flexible withdrawal or further cash sums are not available through the Scheme and you would have to transfer elsewhere.
How does it do this?
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 Unitised With Profits | -0.5% | 0% |
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 | £19,902 | £19,902 |
| 5 | £19,517 | £19,517 |
| 10 | £19,046 | £19,046 |
| 15 | £18,586 | £18,586 |
| 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 | £99,512 | £99,512 |
| 5 | £97,585 | £97,585 |
| 10 | £95,228 | £95,228 |
| 15 | £92,928 | £92,928 |
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
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.
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).
