... Your age 30, date of birth 13 February Chosen retirement date 13 February 2042, age Current yearly earnings 30,000

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1 Scottish Widows plc Stakeholder Pensions PO Box Dalkeith Road Edinburgh EH16 5BU Telephone Fax Quote number 1 This is an illustration of what you might get back from your plan at your chosen retirement date The amounts shown aren't guaranteed Please read this carefully and keep it with your other Stakeholder documents Who does the plan cover? You Ms A Sample, female, employed Your age 30, date of birth 13 February 1977 Chosen retirement date 13 February 2042, age 65 Current yearly earnings 30,000 What will the payments be? Assumed start date Payment term 35 years Monthly Payments You pay Basic rate tax relief 4400 Total Index linking You've chosen not to automatically increase your payments each year Assuming that NAEI increases each year at 2% 4% 6% And if your yearly earnings increase in line with NAEI when you retire they might be 59, , ,583 Scottish Widows plc Registered in Scotland No Registered Office in the UK at 69 Morrison Street, Edinburgh, EH3 8YF Tel: Authorised and regulated by the Financial Services Authority, (FSA RegNo ) Scottish Widows plc is a member of the Scottish Widows and Lloyds TSB Marketing Group Scottish Widows acts as a processing and paying agent for Scottish Widows Annuities Limited

2 Where will the payments be invested? Your payments will be invested in the following fund(s) : 2 Fund Consensus Monthly Payments 10000% What might I get when I'm 65? These figures show what you might get if you start taking your pension when you're 65 The table below assumes that all of the payments shown in the 'What will the payments be?' section are made until the payment term ends We've also assumed that: your pension will stay the same from the time you start taking it your pension will be paid at the beginning of each month for a minimum period of 5 years from when you retire If our investments grow until you retire each year at Your final fund value could be 182, , ,000 Which could give you either a taxable pension each year of 8,840 17,000 32,400 Or a tax free cash sum of 45,600 69, ,000 plus a smaller taxable pension each year of 6,630 12,700 24,300 5% 7% 9% Please note These figures are only examples and aren't guaranteed they're not minimum or maximum amounts What you will get back depends on how your investment grows and on the tax treatment of the investment Your retirement fund could be more or less than this All firms use the same rates of growth for illustrations but their charges vary They also use the same rates as each other to show how funds may be converted into pension income Don't forget that inflation will reduce what you could buy in the future with the amounts shown Your pension income will depend on how your investment grows and interest rates at the time you retire

3 3 What are the charges? The charges cover the cost of commission, expenses, profit, and other adjustments Charges may change at any time, but only to the extent, if any, allowed for Stakeholder Pension Plans These charges depend on the type of payment(s) you make Regular Payments there is an annual charge of 0900% each year of the funds you accumulate If your fund is valued at 500 throughout the year, this means we deduct 450 that year If your fund is valued at 7,500 throughout the year, we will deduct 6750 that year How much could I transfer to another pension plan? The last two columns in the table below, assume that we achieve an investment growth of 700% each year Transfer values are not guaranteed Warning: If you transfer during the early years, the value could be less than the amount paid in Monthly Payments Number of Total paid Effect of What the years after in to date deductions transfer value 13/02/2007 to date might be The early years 1 2, , , , , , , , , ,900 The later years 10 24, ,680 32, , ,710 57, , ,500 91, , , , , , , , , , , , , , , , , , ,000 At the age of 65 84, , ,000 Scottish Widows plc Registered in Scotland No Registered Office in the UK at 69 Morrison Street, Edinburgh, EH3 8YF Tel: Authorised and regulated by the Financial Services Authority, (FSA RegNo ) Scottish Widows plc is a member of the Scottish Widows and Lloyds TSB Marketing Group Scottish Widows acts as a processing and paying agent for Scottish Widows Annuities Limited

4 What are the deductions for? 4 The deductions cover our charges, which include the cost of commissions, expenses, profit and any other adjustments The bottom line of the last table shows that over the term to the chosen retirement date, the effect of the total deductions could amount to 65,600 Putting it another way, this would have the same effect as bringing the illustrated investment growth from 70% down to 60% a year If you stop paying Charges will reduce investment at the end of year growth to that date 5(*) from 70% to 60% 10(*) from 70% to 60% At the age of 65 (* Years after 13/2/2007) How much will the advice cost? from 70% to 60% Your financial adviser will give you details of commission payments we make These will depend on the amount of the payment and the payment term They are allowed for in our charges

5 5 Notes Figures shown are for illustrative purposes only and do not form an offer You can receive tax relief on your payments to this, and any other pension plans you have Please see the 'Key Features' for details of any restrictions that may apply For the purposes of this illustration, we have assumed you will receive tax relief on all of your payments Your employer can also make payments to your plan Each year, payments to this, and any other pension plans you have, are subject to an Annual Allowance set by the Government You will normally have to pay a tax charge on any payments that exceed the Annual Allowance, including those made by an employer on your behalf The Annual Allowance is expected to increase each year For the 2006/2007 tax year, it is set at 215,000 A Lifetime Allowance, set by the Government, will apply to the total value of benefits you can receive from all your pension plans A tax charge must normally be deducted from any benefits that exceed the Lifetime Allowance, before they can be paid The Lifetime Allowance is expected to increase each year For the 2006/2007 tax year, it is set at 1,500,000 From 6th April 2010, the earliest age at which you can start taking your pension will increase from 50 to 55 You can start earlier only if you are in ill health, or if your type of work has a lower retirement age approved by HM Revenue and Customs (the Revenue) Please see the 'Key Features' or contact your financial adviser for further information You must read this illustration together with the Key Features of the Scottish Widows Stakeholder There's more information in the product booklet and policy provisions We'll give you copies of these on request These have full details of the deductions we can make, how we make them, how we calculate unit prices and how to change your choice of investment funds If you have any questions, please contact your financial adviser, PARK ROW ASSOCIATES LIMITED Scottish Widows plc Registered in Scotland No Registered Office in the UK at 69 Morrison Street, Edinburgh, EH3 8YF Tel: Authorised and regulated by the Financial Services Authority, (FSA RegNo ) Scottish Widows plc is a member of the Scottish Widows and Lloyds TSB Marketing Group Scottish Widows acts as a processing and paying agent for Scottish Widows Annuities Limited

6 How much will the advice cost? Commission based on the value of your payments The amount will depend on the size of the payment 6 For arranging this part of your pension plan Scottish Widows will pay commission of to your financial adviser, PARK ROW ASSOCIATES LIMITED The commission will be paid for out of the charges