Pension Trustee Bond

The Skandia Pension Trustee Bond is a simple, flexible, plan with tax advantages, the performance of which is linked to funds of your choice. It accepts lump sum investments from Trustees of occupational or personal pension schemes registered under the Finance Act 2004.

Who can take these out?

Trustees of occupational pension schemes or personal pension schemes registered under the Finance Act 2004.

Minimum contribution

£3,000 single contribution (£1,000 top-up).

Term

No minimum or maximum term. You can fully or partially cash in the plan at any time. For certain pension contracts, there is no penalty or charge for this.

Advantages

Tax efficiency

The funds you invest in are free from capital gains tax and generally free from income tax. With less tax paid, more goes towards the growth of your fund.

Investment services

To give you more control over your investments, we offer Phased Investment and Portfolio Rebalancing free of charge.

Phased Investment helps you when market conditions are uncertain as it allows you to drip-feed lump sum payments into your selected funds.

Portfolio Rebalancing enables you to keep your portfolio invested in the proportions you want by periodically realigning your funds back into their original proportions.

Further details about these services are available from your financial adviser.

Loyalty bonus

Certain plans attract a guaranteed loyalty bonus. These plans receive extra bonus units every five years to help boost the value of your pension fund, and once awarded bonus units cannot be lost.

Risks

You need to be aware that there are risks involved in taking out a Pension Trustee Bond and we cannot guarantee the value of your bond for a number of reasons. Some of these are detailed below:

• The value of your pension fund cannot be guaranteed as it will depend on investment performance.
• The value of fund units can go down as well as up and investment growth cannot be guaranteed.
• Tax rules can change at any time, which may affect your pension.
• The level of pension benefits payable cannot be guaranteed as they will depend on interest rates when you start taking your benefits.
• The value of your pension fund may be less than expected if you stop or reduce contributions, or if you take your pension benefits earlier than you had planned.

If the Executive Pension starts with a single contribution and your employer cancels the scheme within 30 days, the amount returned may be less than was paid in.

This web page is only intended as a general introduction to the Skandia Pension Trustee Bond. Full details of the product can be found in the Skandia Pension Trustee Bond Trustees’ Guide, available from your financial adviser.

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Information on this website is not intended for Hong Kong residents. Information on this website about Skandia Group Companies is intended for UK residents only, unless it relates to Royal Skandia, Skandia Life Norge or Suomen Sivuliike. Skandia Group companies do not offer investment advice and no information on this website should be construed as such.

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