Key Features of the MetLife Retirement Portfolio

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1 Key Features of the MetLife Retirement Portfolio

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3 Key Features of the MetLife Retirement Portfolio 1 Key Features of the MetLife Retirement Portfolio The Financial Conduct Authority is the independent financial services regulator. It requires us, MetLife, to give you this important information to help you to decide whether the MetLife Retirement Portfolio is right for you. You should read this document and your personalised illustration carefully to ensure you understand what the product is, how it works and what the risks are. A glossary of terms is included at the back of this document for your reference and the terms are highlighted throughout the document for ease. We recommend you keep both documents safe for future reference. What is the MetLife Retirement Portfolio? The MetLife Retirement Portfolio is a registered personal pension scheme which gives you the chance to build a tailored pension plan, that can be structured around your specific needs. You can choose from a range of risk-rated investments, and you can also decide how much of your investment you want to guarantee. Eligibility You can contribute to the MetLife Retirement Portfolio from age 23 up until your 75th birthday. After your 75th birthday you cannot make any further contributions, but you can transfer in benefits from another pension scheme up until your 91st birthday. Its aims To provide you with an opportunity to: - Save for your retirement in a tax-efficient way - Transfer in your existing pension(s) - Take benefits from age 55 while still benefiting from investment performance - Defer taking an income indefinitely; and - Defer the decision on whether to purchase an Annuity for as long as you like. To allow you to choose, with the help of your Financial Adviser, one or more funds to match your investment objectives and the level of risk you are comfortable taking. To provide benefits for your beneficiaries on your death. Secure Income Option (if selected) To provide you with a guaranteed income for life from age 55 or later. To provide you with the ability to increase your income by locking-in investment gains and annually applying Income Deferral Increases. Secure Capital Option (if selected) To provide you with a guaranteed amount at the end of the term of no less than your Secure Capital Value. To provide you with the ability to lock-in investment gains on an annual basis. Protected Growth Funds (if selected) To provide you with the option of protecting 70%, 80% or 90%, of your fund s highest ever unit price. Your commitment To pay in at least 50,000, made up of transfers from other pension arrangements and/or lump sum contributions from you or your employer of at least 5,000 per contribution. To review your MetLife Retirement Portfolio regularly with your Financial Adviser to ensure it continues to meet your needs. To accept that under normal circumstances you will not be able to take any benefits from the MetLife Retirement Portfolio until you reach age 55. To ensure that you understand the risks and charges associated with this product.

4 2 Key Features of the MetLife Retirement Portfolio Risk factors The risk associated with your investment will be dependent on the funds you choose. You may receive less than the amount shown in your illustration or less than you paid in, because: - Investment performance may be lower than shown in your illustration. - You may have withdrawn more than the amount shown in your illustration. - The tax rules that apply to your investment may change. - You may have taken benefits earlier than expected. If you are transferring the value of benefits from another pension scheme, you may receive less benefit than the amount you would have received from the original scheme. You can choose to cancel your MetLife Retirement Portfolio within 30 days of receiving your cancellation notice. If you do so, you may get back less than you paid in. If you ask us to pay Adviser Charges your investments will grow at a slower rate than if you had not. Where you have requested these to be paid from your Guaranteed Investments, the likelihood that your guaranteed benefits will increase through the lock-in of fund performance will reduce. The higher the level of Adviser Charges paid, the greater their impact. If you ask us to pay Ongoing Adviser Charges just from Protected Growth Funds or Non-Guaranteed Investments, you must maintain sufficient funds in these investments to allow us to make payments in this way. If you do not, and in the absence of any other instructions, we will start making these payments from your Guaranteed Investments. This will mean your guaranteed benefits will be proportionately reduced. In exceptional circumstances we may have to delay making a payment to you or carrying out an instruction to switch your money between funds. This could be due to adverse market conditions or where it would lead to the unfair treatment of you or other policyholders. Normally, we would not expect the delay to be for longer than one month, or up to six months if you have invested in any fund that holds property. Following any delay, transactions will be carried out at the price applicable immediately after the deferred period which will mean that the price will be different from the price when you first instructed us. Should there be any delay we will write and tell you as soon as we can. Risks specific to withdrawing income If you take an income from your plan, this will reduce your fund value. If you take an income, the income you receive may be lower than the amount you could have received from an Annuity. Annuity rates change, and there is no guarantee that they will remain at their current levels, should you decide to purchase an Annuity in the future. If you take withdrawals, the level of income may not be sustainable. There is no guarantee that your income payments will keep pace with Inflation. Important information on the Secure Income Option The Secure Income Option provides a guaranteed income for life, which we calculate using your Secure Income Base and your age when you start to draw an income. Your fund value is not guaranteed. Your Initial Secure Income Base is equal to your investment less any Initial Adviser Charges you have asked us to pay your Financial Adviser. If you choose to make certain Payments Out from your Secure Income Investments, this will proportionately reduce your guaranteed benefits. Depending on the performance of your fund, your income may increase in the future. However, once you start taking your guaranteed income it can only increase once the growth in the fund exceeds the charges, the guaranteed income and any Payments Out you have asked us to make. You must be aged 45 or over to select this option, though you will not be able to take income until you reach age 55. The latest age at which you can select this option is 75. If the Secure Income Option is selected on a joint life basis, then the younger of the two lives must meet the age restrictions. Although you can transfer from the MetLife Retirement Portfolio at any time, the amount transferred will be your fund value which can go down as well as up and you may not get back what you have paid in. The fund value could be higher or lower than your investment or guaranteed amount. You will only be able to switch out of the Secure Income Option on a Secure Income Review date annually and up to 30 days following the review date. As you will be paying an additional charge for the Secure Income Option, your investments will grow at a slower rate than if you had invested in the same fund without the guarantee. For more information on this option, please see the section Questions and answers on the Secure Income Option, later in this document.

5 Key Features of the MetLife Retirement Portfolio 3 Important information on the Secure Capital Option The Secure Capital Option gives you a guaranteed amount at the end of the selected term. If you switch out of the option or transfer away from MetLife before the end of the term you will receive your fund value, which may be higher or lower than your investment or guaranteed amount. You will only be able to switch out of the Secure Capital Option on a Secure Capital Review date annually and up to 30 days following the review date. If you choose to make any Payments Out from your Secure Capital Investments, this will proportionately reduce your guaranteed benefits. As you will be paying an additional charge for the Secure Capital Option, your investments will grow at a slower rate than if you had invested in the same fund without the guarantee. There are a range of terms available for the Secure Capital Option and the maximum age for selecting this option is 75 years. For more information on this option, please see the section Questions and answers on the Secure Capital Option, later in this document. Important information on the Protected Growth Funds The Protected Growth Funds guarantee that your protected unit price will never fall below a selected percentage of the highest ever unit price since launch of the fund. The protection offered is less than 100%, so if the market falls and does not recover you may get back less than you paid in. Although the unit price is protected, you should remember that some of the charges that apply to the product will be paid by reducing the number of units held. See the section Questions and answers on product charges later in this document for more information. Each Protected Growth Fund has a maximum investment in equities which is less than 100%. As such, the returns from the funds in a rising market will usually be lower than a fund invested entirely in equities. For more information on these funds, please see the section Questions and answers on the Protected Growth Funds, later in this document.

6 4 Key Features of the MetLife Retirement Portfolio Questions and answers These are general questions on the Retirement Portfolio which you should read and ensure you understand. What is the MetLife Retirement Portfolio? The MetLife Retirement Portfolio is a registered personal pension scheme which provides you with considerable flexibility and choice over your pension investments and benefits, and in addition can provide you with a guaranteed capital amount, a guaranteed income, or a level of investment protection. Is it a stakeholder pension? No. The Government has set minimum standards on the charges and product terms for stakeholder pensions. The MetLife Retirement Portfolio provides a range of investment choices, which means our charges may exceed those allowed under stakeholder schemes. In addition our minimum contribution is higher than that permitted for a stakeholder pension. A stakeholder pension may meet your needs at least as well as the MetLife Retirement Portfolio. Your Financial Adviser will be able to recommend which type of pension is most appropriate for you. Where is my money invested? Payments into the MetLife Retirement Portfolio are used to invest in one or more available funds. Each of our funds come with a different risk profile, so you can match your choice to the amount of risk you feel comfortable taking. Non-guaranteed options We also offer you the choice of investing in a range of funds on a non-guaranteed basis. Investments in these funds are referred to as Non-Guaranteed Investments. Can I invest in a mixture of Guaranteed, Protected Growth Funds and Non-Guaranteed Investments? Yes you can. You have the option of investing in a range of portfolios so you can build your MetLife Retirement Portfolio to suit your retirement plans. Terms, charges and investment options may vary over time. If you make a new investment choice in the future, this investment will be subject to the terms and conditions available at that time. How much can I pay in? The minimum amount required to set up the MetLife Retirement Portfolio is 50,000. This can be made up of multiple contributions and/or transfer payments from other pension schemes, but the minimum amount of each contribution/transfer payment is 5,000. Additional contributions of 5,000 can be made. If you want to make regular contributions, they must total at least 3,600 a year from each source. There are additional eligibility rules if selecting an income guarantee, capital guarantee or level of investment protection which are explained in later sections. The maximum you can pay into Guaranteed Investments across all MetLife policies is 1,500,000. What investment options are available? The options available to you are set out below. You can switch between these options at any time however certain restrictions will apply to the guaranteed options. These restrictions are set out later in this document. Guaranteed options If you choose to invest in the MetLife Managed Wealth Portfolios, you can select the Secure Capital Option or the Secure Income Option, which provide either a guaranteed maturity amount at a specified date or a guaranteed income for life - these options provide you with security whilst still offering you the potential to benefit from investment performance. Investments with either of the guaranteed options are referred to as Guaranteed Investments. Protected Growth Funds You can also choose to invest in the Protected Growth Funds, which give you a choice of protecting 70%, 80% or 90% of your fund s highest ever unit price. What might I get from my MetLife Retirement Portfolio? Please see your illustration to get an indication of what you might receive. The actual amount you receive may be higher or lower than this and will be determined by a number of factors, including: The amount you have invested. How long it has been invested for. The investment performance of your selected funds. Whether you have selected the Secure Income Option, Secure Capital Option or the Protected Growth Funds. The product charges. Any payments you ask us to make to your Financial Adviser. Any tax-free lump sum withdrawals and/or income you have received. Whether you make any fund switches.

7 Key Features of the MetLife Retirement Portfolio 5 What choices will I have when I take benefits from my pension fund? The MetLife Retirement Portfolio can be used to provide retirement benefits from age 55. Providing you have not already done so, you can usually receive a Tax-free Lump Sum of up to 25% of your pension fund value. If you choose to take a Tax-free Lump Sum from your fund, this will be calculated on the fund value and will reduce proportionately the value of any guarantee you have selected if drawn from this fund. You can then decide to take an income immediately or defer it to a later date. If you are taking benefits for the first time from 6th April 2015, your income will be provided on a Flexi-access Drawdown pension. Under Flexi-access Drawdown you can take as much income as is required subject to income tax. Alternatively you can take one or more lump sums from uncrystallised funds, known as an Uncrystallised funds pension lump sum (UFPLS). 25% of an UFPLS is usually tax-free; the rest is taxable as income. Taking large UFPLS could cause you to pay tax at a higher rate. If you took benefits prior to 6th April 2015, you may have a capped drawdown. Capped drawdown continues unless you decide to convert to flexi-access drawdown. Capped drawdown income is suject to limits set by HM Revenue & Customs (HMRC) based on rates published by the Government Actuary s Department (GAD). You may purchase an Annuity from another provider. Once bought you cannot change the basis of most annuities. MetLife does not provide annuities but if you would like to purchase one please contact us and tell us which company you would like to provide you with this. Can I transfer out of the MetLife Retirement Portfolio? You can transfer your benefits out of the MetLife Retirement Portfolio into another UK-registered pension scheme or a qualifying recognised overseas pension scheme at any time. If you have taken a lump sum or income from your MetLife Retirement Portfolio then you can usually only transfer benefits in full to another arrangement that provides a drawdown pension. What benefits are paid when I die? The remaining fund value (or Guaranteed Death Benefit) will be used to provide your beneficiaries with benefits, which could include: A lump sum (which may be subject to tax); and/or A drawdown pension; and/or An Annuity. Tax is payable on death benefits that are paid on death on or after the age of 75. Guaranteed Death Benefits are provided when you choose to guarantee your income or capital. Please read the Secure Income Option or Secure Capital Option sections for further details. You may like to complete a nomination to let the trustees of the scheme know who you would like to benefit. How will I know how my MetLife Retirement Portfolio is doing? We will send you a statement each year showing you how your MetLife Retirement Portfolio is performing. You can also request a statement at any time by contacting us. Can I pay my Financial Adviser from my MetLife Retirement Portfolio? Yes you can. For the options available please refer to the Adviser Charging section later in this document. Can I change my mind? You can change your mind within 30 days of receiving the cancellation notice that will be issued to you when your application for the MetLife Retirement Portfolio is accepted. If your contribution has been invested and the fund value has fallen, the amount refunded to you will be less than your original investment. If you have transferred benefits from an existing pension arrangement, it may not be possible for that arrangement to accept the payment back. If you have asked us to make payments to your Financial Adviser, any amounts paid prior to cancellation will not be returned to you by us. You may, however, be able to recover some or all of these amounts directly from your Financial Adviser. What about tax? The Retirement Portfolio is a registered pension scheme which means it has some tax advantages over other types of investment: you can receive tax relief on your contributions, the funds grow free of most taxes, you can receive a Tax-free Lump Sum and your pension fund will not usually be subject to inheritance tax. Any income you take is subject to income tax. HMRC sets two limits to these tax advantages. Firstly, an annual allowance which restricts tax relief on contributions in a year and secondly, a lifetime allowance which restricts the value of benefits you can take in your lifetime. You should speak to your Financial Adviser to find out more about current allowances and if they could impact you. For any questions regarding taxation and the impact of this investment on your personal circumstances, you should talk to your Financial Adviser. Please remember that the tax rules relating to your MetLife Retirement Portfolio may change in the future, which could affect the returns you receive from your pension fund or the charges MetLife makes.

8 6 Key Features of the MetLife Retirement Portfolio Questions and answers on the Secure Income Option What is the Secure Income Option? The Secure Income Option is an option under the Retirement Portfolio which guarantees you an income for the rest of your life. In addition, the guaranteed amount can increase through: Lock-ins of positive investment performance (whether you defer your income or take it immediately); and guaranteed step-ups where you choose to defer taking an income (known as Income Deferral Increases). You can have the Secure Income Option on all or part of your investments. Can I choose the Secure Income Option? The Secure Income Option is available on selected MetLife Managed Wealth Portfolios. You have to invest at least 5,000 (per portfolio) when you select the Secure Income Option initially. After that you can invest additional amounts of at least 5,000 as well as regular contributions of at least 3,600 per year. How does the Secure Income Option work? Your investment, less any Initial Adviser Charges you ask us to pay to your Financial Adviser, is called your Initial Secure Income Base. We calculate your guaranteed income using a percentage of your Secure Income Base, which depends on: Your age (or age of the younger person if selecting joint life) at the point income starts to be taken; and Whether the income is based on a single life or joint lives. We call this percentage your Guaranteed Income Percentage. Your personalised illustration contains further details. The Secure Income Option can be selected on a single or joint life basis. If joint life is chosen, the guaranteed income can be paid to your dependant on your death. The current Guaranteed Income Percentages for single life are shown in the following table. For joint life, the percentage is based on the younger of the two lives and then reduced by 0.25%. Can I defer taking my income? Yes you can. If you defer taking an income, MetLife guarantees to increase your Secure Income Base by 3.50% of your Income Deferral Base for each full year you defer taking income. These increases are called Income Deferral Increases. For every Income Deferral Increase we will calculate the increase using the value of your Income Deferral Base at that time. When you come to take an income the Guaranteed Income Percentage has the potential to be higher, as this is based on your age when you start taking income. Is there a limit to how long I can defer taking my income? There is no maximum deferral period. The Income Deferral Increases will only stop once you start taking an income. What is a Secure Income Review? Secure Income Reviews take place on the anniversary of your investment. At this time we will review the performance of your fund. Where your fund value is higher than your Secure Income Base, we will increase your Secure Income Base to this amount. There is no limit to the gains that can be locked-in. Where the fund value is lower than your Secure Income Base, the Secure Income Base will remain the same. Secure Income Reviews occur annually, even when income is deferred. Is my guaranteed income affected by HMRC income limits? Your Guaranteed Income Percentage is guaranteed for life and MetLife will ensure it can always be paid within the HMRC limits where you are in capped drawdown. Occasionally we may have to delay some of your income where it exceeds the HMRC maximum for up to 12 months. However a catch-up payment will be made at the first opportunity, which will be after the next possible review of HMRC income limits. Age % Age % Age %

9 Key Features of the MetLife Retirement Portfolio 7 How flexible is the Secure Income Option? You can take up to the guaranteed income without affecting your Secure Income Base. However if you choose to take income which exceeds your annual guaranteed income, this will be treated as a Payment Out and will immediately reduce your guaranteed income. You should speak to your Financial Adviser for more information. You can switch out of a portfolio with the Secure Income Option at any Secure Income Review of your investment and up to 30 days following the review date. Your fund value at that point can be paid into another fund but you will not be able to select the Secure Income Option or change from one MetLife Managed Wealth Portfolio to another within the Secure Income Option for six months. You can transfer your fund value out of the Retirement Portfolio at any time. What happens if I die when I have the Secure Income Option? There is a Guaranteed Death Benefit included with this option. The value used to provide death benefits (as mentioned earlier) is whichever is higher at the time we are notified of your death: a. Initial Secure Income Base less guaranteed income taken and reduced by any Payments Out; or b. fund value Where the Secure Income Option was taken on a joint life basis this guaranteed minimum death benefit is available on the second death - this means after the death of you and your named dependant. Until then the guaranteed income is payable. How will Payments Out affect my Secure Income Base? If you choose to make any Payments Out from investments with the Secure Income Option, these payments will proportionately reduce your fund value and your guaranteed benefits will be recalculated to reflect the amount of the payments.

10 8 Key Features of the MetLife Retirement Portfolio Questions and answers on the Secure Capital Option What is the Secure Capital Option? The Secure Capital Option is an option under the Retirement Portfolio which guarantees the capital value of your investment. In addition, the guaranteed amount can increase through annual Lock-ins of positive investment performance. You can have the Secure Capital Option on all or part of your fund. Can I choose the Secure Capital Option? The Secure Capital Option can be selected on our MetLife Managed Wealth Portfolios. You have to invest at least 5,000 (per portfolio) when you select the Secure Capital Option for the first or subsequent time. If you are paying regular contributions you cannot invest these in this guarantee. How does the Secure Capital Option work? Your investment in the Secure Capital Option, less any Initial Adviser Charges you have asked us to pay to your Financial Adviser, forms your guaranteed amount - we call this your Secure Capital Value. This is the minimum amount that you will get at the end of the term. Your Secure Capital Value can increase through Lock-ins at Secure Capital Reviews. Secure Capital Reviews occur annually, where we review the performance of your fund on each anniversary of your investment. Where your fund value is higher than your Secure Capital Value, we will increase your Secure Capital Value to this amount. Where the fund value is lower than your Secure Capital Value, then your Secure Capital Value remains the same. The gains that can be locked-in through Secure Capital Reviews are unlimited. At the end of the term, the greater of the fund value in your Secure Capital Option or the Secure Capital Value is placed in a cash fund. You can then discuss what to do next with your Financial Adviser. How flexible is the Secure Capital Option? You can switch out of a portfolio with the Secure Capital Option at any Secure Capital Review of your investment and up to 30 days following the review date. Your fund value at that point can be paid into another fund but you will not be able to select the Secure Capital Option or change from one MetLife Managed Wealth Portfolio to another within the Secure Capital Option for six months. You can transfer your fund value out of the Retirement Portfolio at any time. What happens if I die when I have the Secure Capital Option? There is a Guaranteed Death Benefit included with this option. The value used to provide death benefits (as mentioned earlier), is whichever is higher at the time we are notified of your death: a. the fund value; or b. your Secure Capital Value. How will Payments Out affect my Secure Capital Value? If you choose to make any Payments Out from investments with the Secure Capital Option, these payments will proportionately reduce your fund value and your guaranteed benefits will be recalculated to reflect the amount of the payments. Can I take any money out of the Secure Capital Option? Yes, you can choose to draw a Tax-free Lump Sum, UFPLS and / or income, switch or transfer out part of your fund from the Secure Capital Option. These are Payments Out and will proportionately reduce your guaranteed benefits. Speak to your Financial Adviser for more information.

11 Key Features of the MetLife Retirement Portfolio 9 Questions and answers on the Protected Growth Funds What are the Protected Growth Funds? The Protected Growth Funds are a range of portfolios that allow you to benefit from investing in equities whilst also providing you with a level of protection against market falls. Depending upon the level of protection selected, the Protected Growth Funds guarantee that your unit price will not fall below 70%, 80% or 90% of the fund s highest ever unit price. Can I choose the Protected Growth Funds? You can invest in the Protected Growth Funds if you are a UK resident aged 23 or over. Maximum age is 90 years at the time the investment is made. Whilst maximum age restrictions apply under the Retirement Portfolio, MetLife can review this on an individual case basis. How do the Protected Growth Funds work? An advantage of the Protected Growth Funds is that they allow you to invest in equities and benefit from rises in the market whilst at the same time offering your investment a degree of protection from market downturns. The protection provided will depend upon the protection level selected at outset. MetLife currently offers three levels of protection: 70%, 80% or 90%. The protection applies to the unit price within the fund. We guarantee that your protected unit price will never fall below 70%, 80% or 90% of the highest ever unit price of that fund. For example, if you invest your full fund with 80% protection you are guaranteed that your protected unit price will never fall below 80% of the fund s highest ever unit price. You can benefit from this protection daily. Each time the fund price increases to a new high, your protected unit price also increases. If the fund price falls, your protected unit price remains unchanged. If the fund falls below a certain level, the fund may become entirely invested in cash. This would protect it from further market falls, but would also make it unable to benefit from market recovery. We call this cash protection. Cash protection can occur in extreme stock market conditions, or where markets continue to fall progressively over time. If it should occur, we will notify you in writing with details of alternative investment options available to you. If we don t hear from you within a set period of time, we will switch your investment into an alternative cash fund where it will remain until we receive further instructions from you. We reserve the right to declare cash protection in other exceptional circumstances. The graph below provides an illustrative example of the 80% Protected Growth Fund, the unit prices and protected unit prices a customer would receive based on three different investment periods. Customer A B C Time of investment (year) Launch 2 5 Initial unit price Initial protected unit price Protected unit price at cash protection For example, Customer B purchases units in year two at a cost of 85p per unit. MetLife will protect 80% of the highest ever unit price for that fund since its launch. Therefore the initial protected unit price of Customer B will be 80% of 1 rather than 80% of the unit purchase price of 85p. If cash protection occurred at year 10, as Customer B has a protected unit price of 1.10 (80% of the highest ever unit price, in this case 1.38), their unit price will never fall below Customer C Customer A Unit Price Customer B 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Unit Price Protected Unit Price

12 10 Key Features of the MetLife Retirement Portfolio How is the protection provided? The MetLife Protected Growth Funds offer three layers of protection giving you a greater level of security. The first layer of protection is the daily management of the Protected Growth Funds. MetLife uses a dynamic daily asset allocation approach, closely monitoring stock market conditions - including volatility - to determine how much of your money should be in equities and how much should be in the cash fund. When markets are rising, we allocate more of your money to the underlying stock market fund so it has the potential to benefit from future rises. When markets are falling or are volatile, we place more of your money in the underlying cash fund to protect it from potential future falls. To calculate when to move funds and how much to move between these two funds we work closely with Barclays*. The second level of protection is provided by Barclays, whereby they will make up any shortfall, or gap should your fund fall below the protected level. The third level of protection is offered by MetLife. If the value of the fund should fall below the level of protection you have selected, and Barclays was unable to meet its obligations, MetLife will ensure there are always sufficient funds available to meet the protection level you have selected. We reserve the right to declare cash protection in other exceptional circumstances. We reserve the right to use an alternative source of protection or to provide this protection using alternative means. If we do make any changes to how we provide protection, you will still have the MetLife guarantee that your unit price won t fall below the protected level. How flexible is my investment in the Protected Growth Funds? You can take a Tax-free Lump Sum and/or income from your investment at anytime. You can make additional payments into your investment, subject to a minimum payment of 5,000. Additional payments can be made at any time but are subject to the charges, investment choices and conditions applicable at that time. We reserve the right to not accept top-ups in the future. You can invest up to 1.5 million into Protected Growth Funds. You may switch between different Protected Growth Funds and the cash fund and you may also be able to switch into other MetLife funds at any time. We normally do not charge for switches, but reserve the right to make a charge if more than 12 are made during a calendar year. What happens if I die when invested in the Protected Growth Funds? The death benefit payable will be the fund value. * Barclays Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services number: ). Barclays Bank PLC. Registered in England No

13 Key Features of the MetLife Retirement Portfolio 11 Questions and answers on product charges What are the product charges? These are charges for the administration and management of your investment, as well as specific charges if you choose to invest in the Secure Capital Option, Secure Income Option or Protected Growth Funds. Where can I find details of my product charges? Your illustration will provide you with details of the product charges that apply to your policy, as well as an indication of the impact that these charges may have on the benefits your product provides. Product charges Annual management charge - This is applied by us for managing your plan and is deducted monthly by cancelling units in your policy. The level of charge will depend upon the value of your investment at the time the charge is taken. Fund charges - Each portfolio in which you invest carries a fund manager s charge. This charge is in respect of buying, selling, owning and ongoing maintenance of the investment assets and will be applied by reducing the price of each unit in the investment fund. Guarantee charge - This is similar to an insurance premium and covers the cost of MetLife providing your guaranteed capital or income. This charge is taken monthly by cancelling units in your policy. If selecting the Secure Capital Option, the guarantee charge is based on the Secure Capital Value. If selecting the Secure Income Option the guarantee charge is based on the Secure Income Base. Protection charge - This is similar to an insurance premium and covers the cost of MetLife providing your chosen level of investment protection. This charge is included in the unit price and only applies to the Protected Growth Funds. Product charges on your investment may change over time, if they do we will inform you in advance of any increase. Our reasons for increasing charges could include changes in the law, taxation, regulation, charges of underlying third party funds or solvency considerations.

14 12 Key Features of the MetLife Retirement Portfolio Questions and answers on Adviser Charges What are Adviser Charges? These are payments made by you to your Financial Adviser for advice or services provided to you by your Financial Adviser in respect of this policy. How can I pay Adviser Charges? You can choose to pay your Financial Adviser directly or you can ask MetLife to make these payments on your behalf. If you ask MetLife to make these payments, we will do so by cancelling units from your policy. How will the payment of Adviser Charges affect my policy? As payments to your Financial Adviser (Payments Out) are funded through the cancelling of units from your policy, this will reduce the value of your investment. Where these payments are taken from Guaranteed Investments they will reduce your guaranteed benefits in proportion to each amount paid. MetLife reserves the right not to pay an Adviser Charge if it considers that the payment requested would cause the MetLife product that you are invested in to no longer perform in accordance with its design. What Adviser Charges can be paid from my policy? Initial Adviser Charge - This is a one-off payment made to your Financial Adviser at the start of the policy and will be deducted proportionately from all your funds. Ad-hoc Adviser Charge - This is a one-off payment that can be made to your Financial Adviser during the lifetime of your policy and will be deducted proportionately from all your funds. Ongoing Adviser Charge - These are regular payments made to your Financial Adviser on a monthly, quarterly, termly (every four months), half yearly or yearly basis. You can choose how you want us to pay Ongoing Adviser Charges, as shown below. You may cancel or vary the level of these payments at any time, but the payments may not exceed the level you request at outset. Where can I find details of my Adviser Charges? Please see your illustration and the examples on the following page for more details on Adviser Charges and an indication of the possible impact these payments could have on your investment return, guarantee and / or level of investment protection. What payment options are available if I choose to pay Ongoing Adviser Charges from my policy? At the start of your policy you have two payment options to select from. This selection will apply for the duration of your policy. The options are: a. across all your investments (including Guaranteed Investments); or b. across all your investments (excluding Guaranteed Investments). If you select option (b), payments to your Financial Adviser will not reduce the guaranteed benefits, provided you maintain enough units in your Protected Growth Funds and Non- Guaranteed Investments. Where there are insufficient units, we will make up any shortfall from your Guaranteed Investments. If you would like us to continue paying Ongoing Adviser Charges from your Protected Growth Funds and Non-Guaranteed Investments, you can make additional contributions or switch funds from your Guaranteed Investments. Please note you will only be able to switch funds in this way within the 30-day period following the anniversary of your policy review date.

15 Key Features of the MetLife Retirement Portfolio 13 Examples of Adviser Charges Paying Adviser Charges from all your investments, including Guaranteed Investments If you instruct MetLife to make payments to your Financial Adviser on your behalf from your investments, MetLife will make any such payments by cancelling units proportionately across your investments to the value of the payment you have asked us to make. Following each payment made, your fund value and guarantee base* will be recalculated to reflect the amount we have paid to your Financial Adviser. Here is an example based on a fund value of 120,000 and guarantee base of 117,000: You agree to pay your Financial Adviser an Ongoing Adviser Charge of 0.50% of your fund value each year and you instruct MetLife to make this payment monthly. On the date the Ongoing Adviser Charge is due, MetLife would cancel units across your investments and make a payment to your Financial Adviser, in this example, of 50 (this being a twelfth of 0.5% per annum applied to your fund value). Following the payment of 50, your new fund value would be 119,950. Your guarantee base would reduce in proportion to the amount of the payment. Following the payment of 50, your guarantee base would be 116,951 (a twelfth of the 0.50% reduction). Any future guaranteed benefits you receive would be based on this new guarantee base. The frequency with which you request MetLife make these payments will dictate how often during a year your relevant guarantee base and benefits are recalculated. Paying Adviser Charges from all your investments excluding Guaranteed Investments You agree to pay your Financial Adviser an Ongoing Adviser Charge of 0.50% of your fund value each year and you instruct MetLife to make this payment monthly. You hold a mixture of investments and you have asked us to pay your Financial Adviser only from your Protected Growth Funds and Non-Guaranteed Investments. On the date the Ongoing Adviser Charge is due, your fund value is 120,000; 100,000 in Guaranteed Investments and 20,000 in Protected Growth Funds and Non-Guaranteed Investments. MetLife would cancel units across your investments in the Protected Growth Funds and Non-Guaranteed Investments and make a payment to your Financial Adviser, this example, of 50 (this being a twelfth of 0.5% of your fund value). Following the payment of 50 from these investments, your new fund value for your Protected Growth Funds and Non-Guaranteed Investments would be 19,950. Since you have instructed us to pay your adviser only from your Protected Growth Funds and Non- Guaranteed Investments, the fund value of your Guaranteed Investments and your guarantee base would remain unchanged. To ensure this continues to be the case, you must always maintain sufficient funds in your Protected Growth Funds and Non- Guaranteed Investments to cover future payments. * For the purpose of the examples above guarantee base means your Secure Income Base and Income Deferral Base if you have the Secure Income Option; it means the Secure Capital Value if you have the Secure Capital Option.

16 14 Key Features of the MetLife Retirement Portfolio Glossary This is a glossary of key terms included in your personalised illustration and Key Features Document, for a full list of defined terms please refer to the General Terms and Conditions. Adviser Charges means the money that you ask us to pay from your policy to your Financial Adviser for their advice and services provided to you. More information can be found in the Questions and answers on Adviser Charges section. Annuity is a product that provides you with a pension income for the rest of your life. Guaranteed Death Benefit provides your beneficiaries with a monetary benefit upon your death. Guaranteed Income Percentage the rate that is applied to your Secure Income Base to calculate the guaranteed income payable. Guaranteed Investments funds included with the Secure Income and Secure Capital Options. Guaranteed Future Income the guaranteed income available to you in the future at the date you choose to take your benefits. Immediate Guaranteed Income the guaranteed income payable if you choose to start taking an income straight away. Income Deferral Increases are guaranteed increases to the Secure Income Base for each year you choose to delay taking an income. Income Deferral Base is equal to your investment proportionately reduced by any Payments Out / Adviser Charges made since the start of your policy. Inflation represents the rate at which the cost of living changes over time. Initial Secure Income Base is equal to your investment less any Initial Adviser Charges you have asked us to pay your Financial Adviser. Lock-ins when positive investment performance is locked-in for the Secure Income or Secure Capital Option. Non-Guaranteed Investments funds used without the Secure Income and Secure Capital Options. Payments Out mean any payments made from your secure investments including: income withdrawals that exceed your annual Guaranteed Income; switches out; transfers out (including under the open market option); Tax-free Lump Sum; Ad-hoc Adviser Charges; and / or Ongoing Adviser Charges. All Payments Out will proportionately reduce your guaranteed benefits. Protected Growth Funds provide the option of protecting 70%, 80% or 90% of your fund s highest ever unit price. More information can be found in the Questions and answers on the Protected Growth Funds.

17 Key Features of the MetLife Retirement Portfolio 15 Secure Capital Option provides a guaranteed amount at the end of the term, of no less than your Secure Capital Value. Secure Capital Review where we review the performance of your fund on each anniversary of your investment. Where your fund value is higher than your Secure Capital Value, we will increase your Secure Capital Value to this amount. Secure Capital Value is your guaranteed amount, or your investment in the Secure Capital Option and will reflect any Adviser Charges you ask us to pay to your Financial Adviser. Secure Income Option provides a guaranteed income for life from age 55 or later. Secure Income Review where we review the performance of your fund on each anniversary of your investment. Where your fund value is higher than your Secure Income Base, we will increase your Secure Income Base to this amount. Tax-free Lump Sum you can normally take up to 25% of your fund as a tax-free lump sum. This is technically referred to as Pension Commencement Lump Sum (PCLS).

18 16 Key Features of the MetLife Retirement Portfolio Further information Terms and Conditions This Key Features Document aims to give you a summary of important information you should know in regards to the MetLife Retirement Portfolio. For further information you should also read the Retirement Portfolio Terms and Conditions. If you do not have a copy, you can obtain one from your Financial Adviser or by contacting us directly. Complaints If you have a complaint about your Retirement Portfolio or wish to receive a copy of our complaints procedure, please contact: MetLife Europe Limited Beacon House, 27 Clarendon Road, Belfast BT1 3BG Tel: If you are not satisfied with the response to your complaint in respect of your Retirement Portfolio, you can contact the: Financial Ombudsman Service (FOS) Exchange Tower, London E14 9SR Freephone numbers are if calling from a fixed line, or from a mobile phone if you pay a monthly charge for calls to numbers starting with 01 or 02. The switchboard number is Making a complaint will not affect your legal rights. The maximum level of compensation for claims against firms declared in default is 90% of the claim with no upper limit. You can obtain further information on this matter from the FSCS. Financial Services Compensation Scheme 7th Floor, Lloyd Chambers 1 Portsoken Street, London E1 8BN Tel: +44 (0) About MetLife Europe Limited The MetLife Retirement Portfolio and the guarantees referred to in this document are provided by the UK branch of MetLife Europe Limited, an Irish Company authorised by the Central Bank of Ireland. MetLife Europe Limited provides a range of long-term savings and retirement products to help investors build financial freedom for their future. The products combine optional guarantee features with a range of investment options drawn from leading investment managers and advisers. MetLife Europe Limited, trading as MetLife, is an affiliate of MetLife, Inc. and has been operating under the MetLife brand in the UK since To view our latest financial strength ratings, please visit the `About MetLife section at: Services are delivered from MetLife Europe Limited s head office in Ireland, and from offices in the U.K. For more information about MetLife Europe Limited, please visit our website at: Taxation Information contained in this document is based on MetLife s understanding of taxation, legislation and HM Revenue & Customs practice, as at April 2015, all of which may change in the future with or without notice. Governing Law The Retirement Portfolio Terms and Conditions are governed by the Law of England & Wales. We will communicate in English throughout the course of this contract. Compensation Your Retirement Portfolio is covered by the Financial Services Compensation Scheme (FSCS). As such, if we cannot meet our obligations, you may be entitled to compensation from the Scheme. This will depend upon your eligibility, the type of business and the circumstances of the claim. How to contact us Your Financial Adviser will normally be your first point of contact for any questions you have. If you would like to make any changes to your Retirement Portfolio, you can: Call us on between the hours of 9am and 5pm Monday to Friday. Please note that calls may be recorded or monitored for training and security purposes. us at customerservice@metlife.co.uk Write to us at: MetLife Customer Service Centre Beacon House, 27 Clarendon Road, Belfast BT1 3BG Whenever you contact us, you will need to quote your policy details.

19 Key Features of the MetLife Retirement Portfolio 17

20 Want to find out more? Speak to your Financial Adviser to learn more about how this product could work for you, or call us on If you are looking for a Financial Adviser, you can find one close to you at You can also visit us at for more information Products and services are offered by MetLife Europe Limited which is an affiliate of MetLife, Inc. and operates under the MetLife brand. MetLife Europe Limited is authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. Registered address: 20 on Hatch, Lower Hatch Street, Dublin 2, Ireland. Registration number UK branch address: One Canada Square, Canary Wharf, London E14 5AA. Branch registration number BR WM l MAR 2015 l MAR 2015