04.08.2005
With profits bonus rates
Press releases are intended for information only and should not be relied upon by customers when making investment decisions.
Due to their nature some of the information in the press release may no longer be current.
Standard Life has completed a mid-year review of bonus rates on with profits savings and investment policies. Key points of the review are as follows:
- Annual bonus rates on conventional and unitised with profits policies remain unchanged from the previous declaration (February 05).
- Most customers reaching maturity or retirement benefit from an increase in the value of their policies compared to year ago.
- Maturity and retirement payouts continue to compare favourably with other types of long-term investment.
The following table shows the increase in policy values at maturity or retirement compared to surrender or transfer values a year ago:
Pension (20 years, £200 per month)
| Retirement value today (04/08/05) |
Transfer value of policy one year ago (01/08/04) | Premiums paid during the last year | Effective growth over year |
| £108,601 | £95,876 | £2,400 | 10.6% |
Based on a Standard Life 20-year with profits pension for a male retiring at age 65 paying premiums of £200 per month. Past performance is not a guide to future performance.
Savings Endowment (10 years, £50 per month)
| Maturity value today (04/08/05) |
Surrender value of policy one year ago (01/08/04) | Premiums paid during the last year | Effective growth over year |
| £6,739 | £5,494 | £600 | 11.1% |
Based on a Standard Life 10-year with profits savings endowment taken out by a male when aged 29 paying premiums of £50 per month. Past performance is not a guide to future performance.
John Gill, Managing Director, Finance, UK Life & Pensions said:
"During recent months we have seen a steady recovery in equity markets which has had a beneficial impact on the underlying value of most with profits policies. Furthermore, our current approach to smoothing payouts means that most pension and endowment customers who reach the end of their policy terms this year will have experienced an increase in the value of their policies over the last year."
Ends