What to expect


In good years, we'll aim to award between 0.15% - 0.25% of the value of your retirement savings invested with us. This is on top of any investment growth.

 


We can't predict the future - so you could get more or less than this. Likewise, we can't guarantee you'll get a ProfitShare award every year.

 


If you have retirement savings invested in our with profits fund, we'll aim to award between 1.2% - 2.0% of the value of those savings.

Purple glasses

To give you an idea of the difference ProfitShare could make, let's introduce you to Harry. 

Harry has just joined his employer's pension plan.

  • He's aged 30
  • He's decided to contribute £230 each month
  • He'll transfer £25,000 from a previous pension into his employer's pension plan 
  • He wants to retire at age 65

 

Harry’s projected retirement savings

The retirement savings Harry's able to build up by age 65 depends on how his chosen investments grow each year as shown in the example below.

Harry's projected plan value at 65

This figure isn't guaranteed and is just an example. Harry could get more or less than this.

We've assumed he'll increase his pension contributions in line with inflation each year and that he'll contribute until he retires at age 65. We've also assumed we'll apply a yearly management charge of 0.75% to all his retirement savings.

We've assumed that inflation will reduce the buying power of Harry's retirement savings by 2% each year. We've allowed for this by reducing the growth rate to 2.1%. This should give a more realistic view of what Harry could buy with his plan if his retirement income was payable today.

 

The impact of ProfitShare for Harry

Now let's look at the difference ProfitShare could make to Harry's retirement savings, assuming we award 0.20% of the value of his plan each year and his investments grow by 2.1% each year.

Impact of ProfitShare for Harry

These figures show that over time, ProfitShare could help to increase Harry's retirement savings from £164,728 to £172,421. This would give him an extra £7,693.

You should remember that this is only an example and investment returns are never guaranteed. This means that while there's a chance your savings could grow, they could also fall in value. So you could get back less than what you started with.