Prudential Investment Plan
The Prudential Investment Plan is an investment bond where you can invest your money in a range of different funds that aim to increase the value of your investment over the medium- to long-term.
- bullet Start your plan with a single payment and make additional payments at any time.
- bullet Access Prudential's Multi-Asset fund range including the PruFund range of funds.
- bullet Tax-efficient withdrawals of up to 5% of your investment each year for up to 20 years.
- bullet Currently able to switch funds free of charge.
- bullet Flexible access to your investment.
Risks and considerations
- bullet This product is only available through a financial adviser.
- bullet The value of your investment can go down as well as up so you might get back less than you put in. If you take more money from the plan than the amount your investment has grown by, the value of your investment will be less than you’ve put in.
- bullet Making withdrawals and/or the application of charges will also reduce the value of your investment.
- bullet Cashing in your plan or taking out more than 5% (in any policy year) of the amount you have invested, may result in an income tax liability.
This is a single premium investment bond that lets you invest your money in a wide range of funds. This could be right for you if you’re looking for a medium- to long-term investment, of between five and 10 years.
• You can start investing – with a minimum of £10,000 and make additional investments of at least £10,000.
• Flexible options for withdrawing your money – you can take regular or partial withdrawals from your bond at any time. You can set the amount of regular withdrawals and choose how often it is taken, within certain minimum and maximum levels.
• There’s also tax benefits – if you pay tax, the Prudential Investment Plan has a valuable built-in tax benefit that allows you to take out up to 5% of your investment each year without having to pay any tax immediately. You can do this for up to 20 years, although if you decide to cash in your plan or take out more than 5% (in any policy year) of the amount you have invested, you may be subject to an income tax liability.
• There is a wide range of investments to choose from - you'll have access to our:
• Core Multi-Asset funds and the PruFund range of funds. The PruFund range of funds are investment funds. They include a smoothing process that aims to give you some protection against fluctuations in the market, in particular, some of the short-term ups and downs associated with investing directly in the Stock Market.
• Five Dynamic Portfolios and two Dynamic Focused Portfolios which target different levels of risk and potential return and provide access to a combination of investment experts - Prudential's Portfolio Management Group for asset allocation and Morningstar for fund recommendations and selection.
• An additional fund range to complement the Multi-Asset funds which are managed by Prudential and other external fund managers who have been chosen for their investment expertise.
As you can see, there are various funds to choose from and if you decide to change your fund investment, you can currently switch between funds free of charge (this could change in the future) and there’s no Capital Gains Tax to pay. Please bear in mind though that there may be certain restrictions applied to certain funds, details of which you can find in the Key Features Document.
Please note that each fund has its own level of risk and potential growth and the charges for each can vary.
Access to the Prudential With-Profits Optimum Return and Optimum Bonus Funds is no longer available to new customers investing in the Prudential Investment Plan on or after 11/09/2017.
However, if you are an existing customer pre 11/09/2017, you will still be able to top up or switch into the Prudential With-Profits Optimum Return Fund and the Prudential With-Profits Optimum Bonus Fund.
Reference to With-Profits on this page is only applicable to policyholders pre 11/09/17.
What you may get back from your investment
This will depend on many things such as the investment performance, any withdrawals you make, additional features you choose, charges applied to your investment and any tax liability that may apply. You can also read more about this in the Key Features Document.
Tax rules require careful consideration and may not reflect your individual circumstances. The above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice.
An important point to also remember is that the value of your investment can go down as well as up and you may not get back the amount you put in. In addition, if any income or withdrawals taken are more than any overall growth achieved the value of your investment will reduce below the level the amount of original capital you invested.
You can read our investment guides for more information on investing.
• You can see the latest expected growth rates for the PruFund range of funds available through our Prudential Investment Plan.
• If you are looking for the latest fund details, you can see this on the prices and information page which lists all of the funds available.
Before you decide whether this investment product is right for you, you should read the following documents and then speak to a financial adviser for further information.
Key Information Document
- Key Features Document
- Prudential Investment Plan fund guide
- Taxation of Bonds
- Guernsey supplement
- Jersey supplement
- The PruFund Range of Funds: Guarantee Options
- Your With-Profits Plan (Unitised With-Profits)
- With Profits Plan - A Guide to how we manage the fund (PruFund)
Are you an existing customer?
If you are an existing customer and looking to make changes to your investment, please visit our dedicated Prudential Investment Plan page in the existing customer Investment section of our website.
How to set-up a financial review meeting
We believe that getting financial advice is vitally important. So, if you don’t already have an adviser, set up a face-to-face meeting with a Prudential Financial Planning adviser in your area. We can review your retirement plans and help make your finances more tax efficient. We offer a restricted advice service.Find out about our face-to-face service
You make a 'capital gain' if you sell assets such as shares or property for more than they cost you. Each tax year you are allowed to make gains up to a certain amount without paying any tax.
For the 2016/17 tax year this figure is £11,100. Everyone has their own individual allowance so it may be possible for couples to make a combined gain of £22,200 before they have to pay the tax - although each individual's circumstances are considered separately. Some gains you make are exempt from capital gains tax. These include gains from the sale of your car and Individual Savings Accounts. Also, you do not have to pay capital gains tax when you sell your home provided certain conditions are met.
We are not recommending one product option over another. We recommend you seek financial advice if you're unsure about what product could be right for you. The information above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice. For more information please visit gov.uk.