Key features of the Pension. Retirement Investments Insurance Health

Transcription

1 Key features of the Pension Investments Insurance Heath

2 Key features of the Pension The Financia Conduct Authority is a financia services reguator. It requires us, Aviva, to give you this important information to hep you to decide whether our Pension is right for you. You shoud read this document carefuy so that you understand what you are buying, and then keep it safe for future reference. This document expains the key features and benefits of your Pension. You shoud read this with the Pension terms and conditions. Its aims To hep you buid up a pension fund in a tax-efficient way. To provide you with a sef-invested persona pension that gives you fexibiity and a range of investment options so you contro how you invest your pension fund. To give you the contro and fexibiity to manage your benefits in retirement. It normay ets you take up to 25% of the pension fund as tax-. You coud use the pension fund to: provide a reguar income by taking withdrawas whie continuing to manage the investments within your pension fund. This is caed Income drawdown take a of the pension fund as cash use the pension fund to buy a retirement income, such as a ifetime annuity. An annuity gives you a guaranteed income for ife. To give your spouse, civi partner or dependants the option of continuing to receive an income or, where avaiabe, taking a singe payment from your pension fund on your death. Your commitment To have a MyAviva account so you can manage your Pension onine. For more detais about MyAviva, pease see page 4. To have onine access and an active e-mai address to aow you to receive correspondence and notifications. To make payments of: at east 50 per month; or a singe payment of at east 5,000, or 1,000 if you re making reguar payments of at east 50 per month. To reguary review your investments and the amount of any withdrawas or payments you make. To have enough money in your cash account to cover charges. To understand that as this is a ong-term investment designed to provide benefits in retirement, you wi normay be unabe to access your Pension fund before the age of 55. To et us know about any change which might affect: your eigibiity to continue making payments to your Pension the administration of your Pension (for exampe, change of address or change of emai address). 2

3 Risks The fund vaue in your Pension, and any income from it, may go down as we as up. How far the vaue goes up and down, or how quicky, can often depend on your choice of investments. You may get back ess than has been invested. The vaue of your investment and the retirement income you get from it depends on the: payments made into your Pension performance of your chosen investments ength of time your money has been invested charges you pay. If the interest rate on the cash account is ess than the Aviva charge your money in cash wi reduce in vaue. We aim to provide a wide range of investment choices at a times, but we reserve the right to withdraw or change any of the avaiabe investment options at any time. If this affects you we wi te you. If you cance your investment during the canceation period, you may not get back a of your origina payment. Pease read the Can I change my mind? section of this document for more information. Some funds may take charges from your investment and not from income. Whist this may boost income, it wi reduce the vaue of your remaining investment. Changes to egisation and reguation, incuding tax treatment, may change the way your Pension works in the future. As a resut of market conditions, the price of investments may fa or rise in the period between us receiving your instructions and the time of the transaction. If you transfer from another pension scheme, you may be giving up vauabe rights in that scheme. There is no guarantee that what you receive at retirement wi be more than the amount you coud have received from the previous scheme. You may not be abe to se or switch between funds if the fund manager concerned has deferred or suspended deaing in the fund at that time. This is more ikey to happen during times of poor market conditions or when the fund manager can t easiy convert the assets to cash, such as where the fund invests directy or indirecty in and or buidings. If your investment grows more sowy than the rate of infation, the buying power of your money wi reduce. A investments have their own risks which you shoud consider before investing in them. You must read a the reevant documents for your investment, for exampe the Key Investor Information Document. You can find the documents onine at Choose your investments. Income drawdown risks Your investments need to grow to compensate for the income you withdraw. If they don t, the income you take wi depete your pension fund, possiby to nothing. Your fund is more ikey to reduce, and more quicky, if you take a high eve of income. You shoud review your income eves reguary to make sure your pension fund can support the eve of income you want, over the period you want it. If you re not sure you have sufficient funds, you coud think about your options, such as reducing your income. If you decide at a ater date to buy a retirement income product such as an annuity, you may receive a ower eve of income from that annuity than if you had bought it with your pension fund before taking income drawdown. For as ong as the fund remains invested, the vaue wi fuctuate and charges wi be taken. If you pan to eave money in your Pension to provide for dependants in the future, be aware that withdrawas from this fund wi reduce the remaining baance. 3

4 Questions and answers What is the Pension? The Pension is a sef-invested persona pension provided through the Aviva patform. This means you can manage the Pension onine through MyAviva. You can choose your own investments and check how they re performing. It heps you to buid up a retirement pension fund in a tax-efficient way, whist aowing you to invest in a wide range of funds, so you can taior your Pension to your needs. If you re 55 or over, you can take a reguar income through income drawdown whie your Pension fund remains invested. What is the cash account? The cash account is where your payments are hed unti the money has been invested and where we wi take payment for any charges. Money in the cash account is hed in one or more cient money trust accounts with HSBC and wi receive interest. We may change the terms of the cash account, the interest rate or the cash account suppier at any time. For further detais on interest rates, pease refer to page 10 (Generic Iustration) under the Cash section. If you want to move your money out of a particuar fund, and you haven t aready decided which fund you want to reinvest this money into, then we wi pace it in the cash account unti you decide. Together with any other money in your cash account, this coud be used to pay for any charges. Some charges, incuding the Aviva charge are taken from the cash account. You must make sure there s enough money in your cash account to pay these charges. For more information, read What are the charges for your Pension? on page 5. What is MyAviva? MyAviva is an onine account that you must hod to have a Pension with Aviva. It provides a singe ocation for you to manage your Aviva products. Through MyAviva, you wi be abe to manage your Pension, incuding making payments, reviewing investments and viewing the vaue of your Pension. How do I invest? Investments are managed onine through your MyAviva account. If you don t aready have a MyAviva account, you must open one as a part of the appication process. The minimum amount you can pay into your Pension, incuding tax reief, is: 50 a month; or 150 per quarter; or 300 haf-y; or 600 a ; or a singe payment of at east 5,000, or 1,000 if you re making reguar payments of at east 50 per month. You or your empoyer can make payments into your Pension. We take any reguar payments by direct debit You can make singe payments by debit card or direct debit. We can ony accept payments from pension hoders who are eigibe for tax reief. Tax reief is given on up to 40,000 or 100% of your annua earnings if ess, or up to 3,600 if your earnings are beow this amount. From Apri 2016, individuas with income above 110,000 may be subject to a tapered annua aowance. If you don t seect any investments when making payments, your money wi stay in the cash account unti you choose your investments. You can transfer from an existing registered pension pan into your Pension. We don t accept the foowing if the vaue is over 30,000: defined benefit pensions (saary-reated benefits) pensions promising set annuity rates (guaranteed annuity rates) pensions with guaranteed minimum pension benefits pensions with any other guarantees. If you are transferring from an existing pension, your money wi be hed in the cash account unti you decide where you want to invest. For more detais, visit Transfer your pension pans. Is this a stakehoder pan? The Government has set minimum standards that companies must meet for stakehoder pensions. These are to do with payment eves, costs and terms and conditions. This pension is not a stakehoder pan. Stakehoder pension schemes are avaiabe and may meet your requirements as we as this pension. 4

5 What can I invest in? You can invest in a wide range of investments funds. You can aso keep some of your money in the cash account. Visit Choose your investments where you can pick investments that suit your attitude to risk and investment goas. How do I make changes to my Pension? You can make changes to your Pension incuding the payment amount, payment frequency and your investments onine through MyAviva. For income drawdown, you can make changes to the amount of income you take and how often you take it by giving us a ca. How do I know how much my Pension is worth? You can see exacty how your investments are performing on MyAviva. You can aso see detaied transaction information. What is income drawdown? You can choose to take income drawdown through the Pension if you are aged 55 or over. You can take as much, or as itte, of your Pension fund as you ike this is known as crystaising your pension. When you crystaise your pension, up to 25% is taken as tax-. The remaining 75% can stay invested and you can use it to take an income. You can take your income as: one ump sum singe payments when you need them reguar payments (you can take reguar income payments monthy, quartery, haf-y or y.) You can make changes to your income, and how often you receive it, by giving us a ca. How can I use my Pension fund? Your statement wi incude a vauation. We contact you twice a to te you when it s avaiabe onine. You can choose to receive paper copies of your statement, but wi be charged for these. When can I get access to my money? You can t normay access your fund before you are 55. You can normay choose to take income drawdown from a, or part, of your Pension at any time from age 55. Any money you withdraw wi mean there is ess eft for ater for you to spend, buy a guaranteed ifetime income or eave for dependants. You can normay take up to 25% of the vaue of your pension fund as tax-. You can t make any withdrawas before this time. If i-heath prevents you from working, you may be abe to start taking a retirement income from your Pension earier than the norma minimum age of 55. You can take a of your pension fund in one payment, if you wish. You can choose to buy a retirement income, such as a ifetime annuity at any time after the age of 55. An annuity gives you a guaranteed income for ife. Once you ve bought one, you can t usuay change your mind or cash it in. You can eave the pension pot so that on your death your beneficiaries wi receive the vaue of your pension, either as singe or reguar payments, ess any income tax due. There is usuay no inheritance tax to pay. What are the charges for my Pension? The charges for your Pension are cear so you can aways see what the costs are. Charges made by Aviva Aviva charge The Aviva charge is the amount we charge for administering your Pension. We cacuate the charge daiy using the vaue of your investment, mutipied by the annua charge and divided by 365. The Aviva charge is taken monthy from the cash account. 5

6 Vaue of investment Annua charge First 50, % Next 200, % Next 250, % Amounts above 500, % If you have an Aviva Stocks & Shares ISA or Investment as we as a Pension on this Aviva Patform, we incude them when we cacuate the Aviva charge. This approach rewards you for the tota vaue of your hodings. We take the Aviva charge each month from your cash account. If there isn t enough money in the account to pay the charge, we se some of your investments. However, if you re ony invested in unit trust funds that are in suspension, we ask you to put money into your cash account to pay the charge. If you don t pay the Aviva charge (this incudes Aviva charge and any paper correspondence charge that is appied), we wi continue to contact you to ask you to do so, and we deduct any outstanding amount when: you se your investment; or the suspension of the fund(s) have been ifted; or any other income goes in to the cash account. If we can se your investments, we do it to cover charges across a the investments in your Pension. We give you 30 days notice if we are going to change our Aviva charge. Paper correspondence charge If you choose to opt out of our paperess account, we appy a charge of 3 a month which wi go to Aviva. Fund manager charges In addition to the Aviva charge, fund managers wi aso take charges that wi depend on the investments you choose. These charges wi be shown as the ongoing charges figure (OCF) or tota expense ratio (TER). These charges represent the annua cost of managing the investment. You can find fu detais of fund managers charges at Choose your investments. What about tax? You currenty receive tax reief on any new payment you make into your Pension. HMRC sets the maximum that you can pay and sti get tax reief. We recaim the basic rate of tax from HMRC on your behaf and add it to your Pension. If you pay tax at more than basic rate, you wi need to caim the extra reief through your annua tax return. Tax reief is given on up to 40,000 or 100% of your annua earnings if ess, or up to 3,600 if your earnings are beow this amount. You aso have an annua aowance. If your tota payments exceed your annua aowance for the current tax, you wi normay pay tax on the amount above that imit. The government set the annua aowance imit and it is 40,000. You don t get tax reief on pension transfers as you ve aready received it when you first paid the money in to the pension. From Apri 2016 individuas with income (incuding the vaue of any pension contributions) of over 150,000 and who have an income (excuding pension contributions) in excess of 110,000 wi be subject to a tapered annua aowance. The rate of reduction in the annua aowance is 1 for every 2 of income. Your pension fund wi grow free of UK income and capita gains tax. Some investment returns may be received with tax credits, or after tax deductions, which cannot be recaimed. If you re 55 or over, you can usuay take up to 25% of your pension fund as tax-. You may have to pay income tax on any income you take. How much you pay wi depend on your tota income at that time. If you start taking benefits from your Pension, other than tax, this wi trigger the Money Purchase Annua Aowance (MPAA). You wi sti have an annua aowance of 40,000 in tota, but no more than 10,000 can be paid into a defined contribution (money purchase) pension and 30,000 for other pension savings. The precise tax benefits of any investments depend on your persona circumstances and tax aws. This information on tax is based on our understanding of current UK egisation and practice. However, tax rues may change in the future. 6

7 Can I change my mind? You can change your mind within 30 days of receiving your canceation notice. After we ve received your first payment, we et you know when you can see the notice onine. The notice gives you more detais of how to cance and how to contact us if you want to cance. If you cance your Pension within the canceation period, we pay back any singe payments, ess any fa in the investment vaue due to market movements and any Aviva charges or fund manager charges aready deducted. We return any reguar payments in fu. For transfer payments, you shoud receive a etter expaining how to cance before the transfer is made. You have 30 days to change your mind. You shoudn t go ahead with the transfer unti you ve had time to refect on your decision. If you decide to change your mind within 30 days, and the existing pension provider has aready reeased the transfer vaue they may refuse to take your transfer back. You wi then need to choose an aternative pension arrangement to receive the transfer vaue. We won t refund any charges directy reated to buying or seing investments. If you take any benefits, such as an income or tax- within the 30 day canceation period, you wi no onger be abe to change your mind and your Pension wi continue. Your Pension wi continue if you don t cance within 30 days. Can I transfer my Pension to another pension provider? You can transfer the fu vaue of your Pension to another provider, subject to their consent and the detais set out in our terms and conditions. If you choose a cash transfer, your money won t be invested for a period of time and may be affected by market conditions. We don t charge for transferring, but there may be charges associated with the new pension or re-registering underying investments. The charges, investment choices and how you can take your retirement benefits may be different from your Aviva Pension. You shoud compare the features of your current Pension with the pension you are thinking of moving to. What happens if I die? If you die before age 75, your beneficiaries can take your Pension fund as a singe payment, annuity or drawdown income, a of which wi normay be paid tax-free and are usuay free of inheritance tax. Where benefits are not aready in payment, singe payments and funds used to provide income benefits on death wi count towards your ifetime aowance. If you die aged 75 or over, your beneficiaries can take your Pension fund as a singe payment, annuity or drawdown income taxed at their margina rate. On death, payments wi usuay be free of inheritance tax. We can t make any changes to your investments unti we have received authorised instructions. As money wi remain invested, the vaue coud go down as we as up during this time and may be worth ess than has been invested. 7

8 Other information How to contact Aviva If you woud ike further information or if you have any questions, you can write, phone or e-mai: Aviva PO Box 520 Norwich NR1 3WG Te e-mai: Compensation The Financia Services Compensation Scheme (FSCS) has been set up to provide protection to consumers if authorised financia services firms are unabe to meet caims against them. Aviva Pension Trustees UK Limited is the authorised financia services firm that provides your Pension. Whether you quaify for any compensation under the FSCS wi depend on the type of investments you hod and different imits of compensation appy to different types of investment. In some circumstances you might not receive any compensation under the FSCS. The avaiabiity of compensation depends on: The type and structure of the investments you choose within your product; Which party is unabe to meets its caims; and Whether you were a UK resident at the time you took out the product. Where compensation is avaiabe in reation to any of your investments, Aviva Pension Trustees UK Limited (the Trustee ) wi make a caim under the FSCS on your behaf. Pension Provider Cash For the cash account (a UK deposit account), the money is hed within a cient money account and the Trustee is normay entited to caim up to 75,000 on behaf of each customer. This imit wi aso take into account any other accounts you hod with that institution. We currenty use HSBC as the provider of the cash account on this patform service athough this may change from time to time. For further information on the FSCS scheme, see or teephone or How to compain If you or someone entited to benefits under your Pension ever needs to compain, you can contact the Compiance Officer at: Aviva PO Box 520 Norwich NR1 3WG Te e-mai: myinvestmentportfoio@aviva.co.uk If you are not satisfied with our response, you may be abe to take your compaint to the Financia Ombudsman Service. The Financia Ombudsman Service can ook at most compaints and is free to use. You do not have to accept their decision and wi sti have the right to take ega action. Their contact detais are: The Financia Ombudsman Service Exchange Tower London E14 9SR Teephone: Emai: compaint.info@financia-ombudsman.org.uk If you suffer a financia oss as a resut of the Pension provider, Aviva Pension Trustees UK Limited, becoming unabe or unikey to be abe to meet its caims, you wi normay be abe to caim under the investment section of the FSCS up to a maximum amount of 50,000 per person. Funds Funds are hed by the Trustee directy for the members who have a beneficia interest. If the individua fund manager becomes unabe or unikey to be abe to meet its caims, the Trustee wi be eigibe to caim compensation under the FSCS athough this wi be restricted to 100% of the first 50,000 hed per person per fund manager. Website: The Financia Ombudsman Service normay can t consider your compaint unti you ve received a fina response from us. This does not affect your right to take ega proceedings. If you have taken a product out onine with Aviva and are unhappy with the product or the service you received, you can use the European Commission s Onine Dispute Resoution service to make a compaint. The purpose of this patform is to identify a suitabe Aternative Dispute Resoution (ADR) provider and we expect that this wi be the Financia Ombudsman Service. Pease be aware that the Financia Ombudsman Service wi ony be abe to consider your compaint after Aviva have had the opportunity to consider and resove this. 8

9 Terms and conditions This key features document gives a summary of the Pension. You shoud aso see the terms and conditions document for the Pension. Law The Law of Engand wi appy in ega disputes and your contract wi be written in Engish. We aways write and speak to you in Engish. Aviva Pension Trustees UK Limited are authorised and reguated by the Financia Conduct Authority: The Financia Conduct Authority 25 The North Coonnade Canary Wharf London Potentia conficts of interest There may be times when Aviva pc group companies or our appointed officers have some form of interest in the business being transacted. If this happens, or we become aware that our interests, or those of our officers, confict with your interests, we take a reasonabe steps to manage that confict of interest. We do this in a way that treats a customers fairy and in ine with proper standards of business. Cient cassification The Financia Conduct Authority has defined three categories of customer. You ve been cassed as a retai cient, which means that you be provided with the highest eve of protection provided by the Financia Conduct Authority rues and guidance. 9

10 Generic Iustration Over the foowing pages, we ve shown how a range of different factors can affect the potentia vaue of your pension fund, and therefore the amount of tax as we as retirement income that you coud have. We have iustrated scenarios for reguar payments, singe payments and transfers. The growth rate depends on the performance of your chosen funds. Therefore it coud be higher or ower than that shown. In reaity, the vaue of your investments in your Pension can go down as we as up and you may get back ess than has been invested. Pease take a ook at the exampes which best fit your pans, but note that these projections are not a reiabe indicator of future performance. We can produce a personaised iustration if you need one. You wi be abe to choose when to use your Pension to provide you with a retirement income; you don t have to foow the time periods we ve used here. You wi aso have access to bi-annua statements which wi hep you to keep track of your Pension. Iustration type Page Reguar payment of 200 a month 11 Initia singe payment or transfer of 20, Transfer to existing pension of 20,000 with existing hoding of 50, The Aviva charge Vaue of investments First 50, % Next 200, % Next 250, % Amounts above 500, % Annua charge The Aviva charge depends on the vaue of your investments. The fund charges are determined by the investments you have chosen. You can find specific fund charges in the Key Investor Information Document. For more detais on charges, pease refer to the What are the charges? section on page 5. A charges may vary in the future. Cash Tax-free interest wi be added monthy to any money hed in the cash account. The current interest rate is 0.-free, 0.25% annua equivaent rate (AER). Tax-free means that interest is exempt from income tax. AER stands for Annua Equivaent Rate and iustrates what the interest rate woud be if interest was paid and compounded once each. This rate is variabe and inked to Bank of Engand base rate so may change in the future. Commission Aviva Pension Trustees UK Ltd wi pay Aviva UK Digita Limited 190 for services provided. This wi be paid within the first 2 months of your pension starting and is a one off payment. This is aowed for in the Aviva charge and is not a separate charge you wi need to pay. The effects of Infation Infation reduces the worth of a savings and investments. A firms use the same assumptions for future infation and the interest rates for converting funds to a retirement income, which may change on 6 Apri each. If you decide to buy an annuity, you may not be abe to buy one at the same rates shown in these exampes. Pension annuity rates are dependent on age and other factors at the time of purchase. To hep you see what your pension fund coud be worth today, the exampes beow take the effect of infation into account. Assumptions When we cacuated the figures, we assumed: a range of different periods to pay into the pension (25, 35 and 45 ) a ow, medium and high growth rate (these are not guaranteed rates, just exampes) the investment funds and charges don t change ow, medium and high cost fund charges the Aviva charge is incuded there is no monthy variation in the amount invested. you use your pension fund to buy an annuity When you buy an annuity you decide to purchase an income that remains eve, is paid monthy in advance and is guaranteed for five or unti death if onger. 10

11 Reguar payment iustration What might I get back from my pan? These exampes are based on a person aged 30 making a reguar gross monthy payment of 200. They show the potentia pension fund vaue and taxabe y retirement income at a retirement age of 55, 65 and 75. Pease refer to the information on page 10 for the important notes about these projections and the assumptions we have used. Exampe 1 A ow cost fund of 0.1% per annum Figures incude the Aviva charge, pus a fund charge of 0.1% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,100 9, ,500 14,600 1,690 91,500 22,800 3, ,200 11,500 1,230 83,400 20,800 2, ,000 40,600 7, ,300 12,500 1, ,000 27,600 5, ,000 68,400 15,600 Exampe 2 A medium cost fund of 0.8% per annum. Figures incude the Aviva charge, pus a fund charge of 0.8% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,600 8, ,800 13,200 1,530 81,800 20,400 3, ,500 10,100 1,080 71,600 17,900 2, ,000 34,300 6, ,400 10,600 1,640 90,200 22,500 4, ,000 54,500 12,400 Exampe 3 A high cost fund of 1.45% per annum Figures incude the Aviva charge, pus a fund charge of 1.45% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,700 8, ,100 12,000 1,390 73,800 18,400 2, ,000 9, ,400 15,600 2, ,000 29,400 5, ,400 9,100 1,410 75,000 18,700 3, ,000 44,100 10,100 11

12 How the charges reduce the vaue of your Pension fund Product and fund charges wi affect the future vaue of your Pension. The tabes beow iustrate the effect of this, after aowing for infation. We ve assumed a medium growth rate of 2.4%. The tabes show what the pension coud be worth assuming three different fund charges. Fund charges do vary, so pease refer to our fund factsheets for specific detais about fund charges, which can be found at aviva.co.uk/retirement/fund-centre. These are ony exampes and the actua rates of return coud be higher or ower than shown here. These exampes are based on a reguar gross monthy payment of 200. Exampe 1 A ow cost fund Investment 1 2, , , , , , ,116 1,500 35, ,919 2,780 46, ,815 4,520 58, ,910 6,760 70, ,298 9,590 83, ,059 13,000 96, ,268 17, ,000 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 0.5% to 1.9% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth Exampe 2 A medium cost fund Investment 1 2, , , , ,288 1,510 22, ,116 3,490 33, ,919 6,370 43, ,815 10,200 52, ,910 15,100 62, ,298 21,300 71, ,059 28,800 80, ,268 37,800 90,200 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 1.2% to 1.2% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth Exampe 3 A high cost fund Investment 1 2, , , , ,288 2,290 21, ,116 5,220 31, ,919 9,410 40, ,815 14,900 48, ,910 21,900 55, ,298 30,500 62, ,059 40,800 68, ,268 53,000 75,000 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 1.9% to 0.5% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth 12

13 Singe payment or transfer iustration What might I get back from my pan? These exampes are based on a person aged 30 making a singe or transfer payment of 20,000. They show the potentia pension fund vaue and taxabe y retirement income at a retirement age of 55, 65 and 75. Pease refer to the information on page 10 for the important notes about these projections and the assumptions we have used. Exampe 1 A ow cost fund of 0.1% per annum Figures incude the Aviva charge, pus a fund charge of 0.1% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,500 3, ,900 7, ,700 16,400 2, ,000 3, ,400 9,620 1, ,000 26,500 4, ,700 3, ,400 11,600 2, ,000 42,700 9,790 Exampe 2 A medium cost fund of 0.8% per annum Figures incude the Aviva charge, pus a fund charge of 0.8% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,000 3, ,700 6, ,100 13,700 2, ,000 2, ,000 7,520 1,060 82,700 20,600 3, ,280 2, ,800 8,450 1, ,000 31,100 7,120 Exampe 3 A medium cost fund of 1.45% per annum Figures incude the Aviva charge, pus a fund charge of 1.45% per annum vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,000 2, ,700 5, ,700 11,600 1, ,740 2, ,900 5, ,700 16,400 2, ,900 1, ,100 6,280 1,190 92,400 23,100 5,290 13

14 How the charges reduce the vaue of your Pension fund Product and fund charges wi affect the future vaue of your Pension. The tabes beow iustrate the effect of this, after aowing for infation. We ve assumed a medium growth rate of 2.4%. The tabes show what the pension coud be worth assuming three different fund charges. Fund charges do vary, so pease refer to our fund factsheets for specific detais about fund charges, which can be found at aviva.co.uk/retirement/fund-centre. These are ony exampes and the actua rates of return coud be higher or ower than shown here. These exampes are based on a singe payment or transfer of 20,000. Exampe 1 A ow cost fund Investment 1 20, , , , ,000 1,230 24, ,000 2,060 26, ,000 3,060 29, ,000 4,250 31, ,000 5,680 35, ,000 7,370 38, ,000 9,370 42, ,000 11,700 46,400 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 0.5% to 1.9% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth Exampe 2 A medium cost fund Investment 1 20, , ,000 1,310 21, ,000 2,870 22, ,000 4,710 23, ,000 6,870 25, ,000 9,400 26, ,000 12,300 28, ,000 15,700 30, ,000 19,700 31, ,000 24,300 33,800 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 1.2% to 1.2% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth Exampe 3 A high cost fund Investment 1 20, , ,000 2,000 20, ,000 4,300 21, ,000 6,950 21, ,000 9,990 22, ,000 13,400 22, ,000 17,400 23, ,000 21,900 23, ,000 27,100 24, ,000 32,900 25,100 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 1.9% to 0.5% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth 14

15 Singe payment or transfer to existing poicy iustration What might I get back from my pan? These exampes are based on a person aged 30 making a transfer of 20,000 with an existing hoding in the Aviva Stocks & Shares ISA or Investment of 50,000. The figures show how the transfer payment reduces the overa percentage of Aviva charge. They aso show the potentia pension fund vaue and taxabe y retirement income at a retirement age of 55, 65 and 75. Pease refer to the information on page 10 for the important notes about these projections and the assumptions we have used. Exampe 1 A ow cost fund of 0.1% per annum Figures incude the Aviva charge, pus a fund charge of 0.1% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,700 3, ,300 8, ,500 16,600 2, ,300 3, ,100 9,790 1, ,000 26,900 4, ,000 3, ,400 11,800 2, ,000 43,500 9,960 Exampe 2 A medium cost fund of 0.8% per annum Figures incude the Aviva charge, pus a fund charge of 0.8% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,200 3, ,100 6, ,800 13,900 2, ,200 2, ,600 7,650 1,080 84,100 21,000 3, ,490 2, ,500 8,640 1, ,00 31,700 7,250 Exampe 3 A high cost fund of 1.45% per annum Figures incude the Aviva charge, pus a fund charge of 1.45% per annum. vaue after Taxabe annua vaue after Taxabe annua vaue after Taxabe annua ,200 2, ,000 5, ,300 11,800 1, ,900 2, ,300 6, ,800 16,700 3, ,060 1, ,700 6,430 1,220 94,300 23,500 5,390 15

16 How the charges reduce the vaue of your Pension fund Product and fund charges wi affect the future vaue of your Pension. The tabes beow iustrate the effect of this, after aowing for infation. We ve assumed a medium growth rate of 2.4%. The tabes show what the pension coud be worth assuming three different fund charges. Fund charges do vary, so pease refer to our fund factsheets for specific detais about fund charges, which can be found at aviva.co.uk/retirement/fund-centre. These are ony exampes and the actua rates of return coud be higher or ower than shown here. These exampes are based on a transfer of 20,000 with an existing hoding in the Aviva Stocks & Shares ISA or Investment of 50,000. Exampe 1 A ow cost fund Investment 1 20, , , , ,000 1,110 24, ,000 1,860 26, ,000 2,770 29, ,000 3,850 32, ,000 5,150 35, ,000 6,690 39, ,000 8,510 43, ,000 10,600 47,400 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 0.5% to 1.9% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth Exampe 2 A medium cost fund Investment 1 20, , ,000 1,260 21, ,000 2,760 22, ,000 4,530 24, ,000 6,620 25, ,000 9,060 27, ,000 11,900 28, ,000 15,200 30, ,000 19,000 32, ,000 23,500 34,500 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 1.2% to 1.2% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth Exampe 3 A high cost fund Investment 1 20, , ,000 1,950 20, ,000 4,200 21, ,000 6,790 21, ,000 9,760 22, ,000 13,100 23, ,000 17,000 23, ,000 21,500 24, ,000 26,600 25, ,000 32,400 25,700 affect the future vaue of the Pension fund. In this exampe the charges woud bring the investment growth after infation from 2.4% a down by 1.8% to 0.6% based on the ongest term (45 ). The figures show the other pension pans. The reduction in growth 16

17 Braie, arge font, audio materia You can order our iterature in Braie, arge font or audio. Just ca or emai and te us: the format you want your name and address the name or code of the document. The code is usuay in the bottom eft hand corner on the back of most documents. Cas may be recorded/monitored for our joint protection. Aviva Wrap UK Limited. Registered in Engand No Aviva, Weington Row, York, YO90 1WR. Authorised and reguated by the Financia Conduct Authority. Firm Reference Number Aviva Pension Trustees UK Limited. Registered in Engand No Weington Row, York, YO90 1WR. Authorised and reguated by the Financia Conduct Authority. Firm Reference Number aviva.co.uk RD /2016 Aviva pc