2012 Bonus Rates for Former Equitable Life Customers
In spite of the extreme volatility during the last 12 months in all financial markets. Prudential has been able to provide some protection to its customers.
We are therefore pleased to announce that despite it being an extremely difficult year, the Overall Rate of Return (ORR) for all policies will remain at 3%.
In order for us to maintain the flexibility of our investment policy and to protect the financial strength of our With-Profits Fund, we aim to keep the cost of the guaranteed benefits on all our With-Profits products at a sustainable level. So this year, as with previous years, we will be declaring a Regular Bonus of 0%.
So what are the 2012 Bonus Rates?
The 2012 bonus rates to be applied to your annuity on the policy anniversary following 1 April 2012 are:
- Overall Rate of Return: 3.00%
- Interim Rate of Return: 6.50%
The bonuses we declare, together with the Anticipated Bonus Rate selected when your annuity was first arranged and any Guaranteed Interest Rate, determine the amount of income you will receive each year. The impact of both the Anticipated Bonus Rate and any Guaranteed Interest Rate was to increase the income payable from the annuity in the early years. This also meant a reduction in the prospect of future income growth and an increase in the likelihood of a fall in income over time.
What does this mean to my income?
Many incomes will have reduced as a result of the Anticipated Bonuses selected when the annuity was first arranged and also from the impact of any Guaranteed Interest Rate that was included when customers originally arranged their annuity. The impact of both of these features (if applicable) was to increase income in the early years of the policy. This then reduced the prospect for future growth and increased the likelihood of a fall in income over time.
Only plans issued before 1 July 1996 are subject to a Guaranteed Interest Rate. This is 3.50% for all such plans.
If you have any questions on this years Bonus Declaration, please read our frequently asked questions.
