Key Features of the With Profits Pension Annuity

Transcription

1 Key Features of the With Profits Pension Annuity

2 Key Features of the With Profits Pension Annuity 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 With Profits Pension Annuity 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 Key Features document gives you the main points of the With Profits Pension Annuity pan. Your iustration shows the pension you may get. Pease read them so you understand what you re buying and keep them with your pan documents. Its aims Risks To pay you a guaranteed minimum income for the rest of your ife. To pay an income to a dependant when you die, if you choose. To refect our investment performance in your future income. Your commitment To use your pension fund to buy a With Profits Pension Annuity from us to ast the rest of your ife. The minimum fund to buy your With Profits Pension Annuity is 20,000, after tax-free cash is taken and any adviser charge is paid. Your income may change each year. It wi depend on the anticipated bonus rate you choose and the actua bonuses we add each year. Your income can go down as we as up. The higher the anticipated bonus rate you choose, the greater the risk that your income wi go down. Your income coud fa, possiby beow your starting eve but not beow a minimum guaranteed amount. What you get back above the minimum is not guaranteed. It may be ower than iustrated if: our investment performance is ower than iustrated our charges increase With Profits Pension Annuity panhoders generay ive onger than we expected at the start of their pan. You can t cash in your With Profits Pension Annuity, even if your persona circumstances change, but you can convert to a conventiona annuity at any point after the first pan anniversary. If you die in the eary years, the tota income you ve received may be ess than the origina payment made to buy the With Profits Pension Annuity. Your dependant won t have any income from this pan after you die if you haven t arranged for your With Profits Pension Annuity to continue, uness you ve seected a Joint Life or guaranteed period option. Remember, infation wi reduce what your money can buy in the future.

3 Questions and answers What is the With Profits Pension Annuity? It s a pan that provides you with an income for the rest of your ife. You buy it with your pension fund. You can normay buy a With Profits Pension Annuity if you are at east age 55 and not oder than 90. You may be abe to take a tax-free cash sum of up to 25% of your pension fund when you buy your With Profits Pension Annuity. If you take the 25% cash ump sum the remainder of your pension fund wi buy a smaer annuity. Your financia adviser wi be abe to give you more detais. The minimum fund to buy your With Profits Pension Annuity is 20,000 after any tax-free cash is taken and any adviser charge is paid. It can provide a dependant with an income when you die, if you choose this option. We invest your pension fund in our With-Profit Fund. Your income may change each year depending upon the bonuses we add. Pease note that future bonuses are not guaranteed and cannot be predicted. You choose an anticipated bonus rate within a range of 0 to 5% in 0.25% steps. This wi set your initia income. The higher the rate you choose, the higher the initia income but this increases the risk that your income may go down in the future. How fexibe is it? Before your pan is set up, you can choose its basis and how it s paid. You can find detais of the choices you can make when setting up the pan, under the headings: What wi my income be? What choices wi I have about how I get my With Profits Pension Annuity Income? At any time after the first year, you can: change the anticipated bonus rate within our imits at the time. We recacuate your income. convert your pan to a conventiona annuity so that your future payments are known. We recacuate your income. You can t make other changes or cash in your pan. What wi my income be? The amount of income you get from your With Profits Pension Annuity wi depend on a number of things, incuding: your age the choices you make about your income see beow the anticipated bonus rate (ABR) you choose our With-Profit Fund investment performance our charges. Your income may change each year up or down. The new income wi depend on your chosen anticipated bonus rate and the actua bonuses we add. The ower the anticipated bonus rate, the greater the potentia that your income wi increase in the future. We guarantee that your income wi never fa beow a minimum amount. This is the income you coud have bought at the start of the pan based upon an anticipated bonus rate of 0%. The reguar bonus is decared annuay usuay on 31 December. Once added it can t be reduced or removed. We pay the benefits on your next pan anniversary after 1 February depending on your choice of payment method, i.e. if monthy it s spread out across 12 payments. The reguar bonus wi never be ess than 0%. In the unikey event we decare a 0% reguar bonus the maximum amount your income can fa is by your chosen ABR %. This woudn t take into account the effect of any additiona bonuses that we may appy. Additiona bonuses are just that additiona and not guaranteed. The amount of the additiona bonus is determined by the year the annuity is taken out, the amount invested and fund performance over the period of investment. Your iustration gives an idea of the income you might get. You can choose to take a smaer income at the start of the pan, so that an income is paid to a dependant if you die before them. This annuity has a one year guarantee as standard. However, you can choose to take a smaer income that is guaranteed to be paid for up to ten years even if you die during that time. This is caed the guaranteed period. You can choose combinations of these options. You can ask for iustrations with different options so that you can see the difference they woud make to your income.

4 If you are taking a With Profits Pension Annuity using the pension fund beonging to your husband, wife, civi partner or person you were dependent on foowing their death: a pension for your dependants is not avaiabe a guaranteed period of pension is not avaiabe Whie you re aive, we won t stop the payments made to you based on the options you ve chosen. How wi my fund be invested? We invest your pension fund in the Aviva Life & Pensions UK Ltd With-Profits Sub-Fund. The With-Profit Fund is invested in a mix of assets, consisting of: company shares (stock market investments) property What happens to my With Profits Pension Annuity when I die? Your With Profits Pension Annuity wi end when you die uness: you die within the first 90 days of your poicy start date, and any dependant named on the poicy dies before you, in which case Vaue Protection wi appy and a ump sum wi be payabe to your estate. you die after 90 days but within your guarantee period. Payments wi continue unti the end of the guarantee period, these wi be paid to your estate or dependant on the poicy. an income is to be paid to a dependant and they are sti aive Pease see your terms and conditions or contact your financia adviser for further information and excusions which may appy to the above. government bonds (oans to the government) deposits You can find more detais about how the With-Profit Fund works in the A guide to your with-profits investment and how we manage our With-Profit Fund For customers investing through a With Profits Pension Annuity booket. A copy of this can be found on What is Vaue Protection? If you die within 90 days of your pan start date, and any dependant named on the poicy dies before you, we wi make a payment to your estate. This wi be equivaent to the vaue of your annuity, minus any payments aready made. This payment wi incude any guaranteed period payments. What choices wi I have about how I get my With Profits Pension Annuity income? You can choose how often you receive your With Profits Pension Annuity income. This can be monthy or yeary. You can choose whether the payment is made at the beginning or end of the frequency period. This is known as in advance or in arrears. What is a guaranteed period? Aviva offers a minimum one year guarantee period as standard, however you can choose a onger guarantee period of up to 10 years. If you die after 90 days but within your guarantee period, we wi continue to make your annuity payments to your estate or dependants unti the end of that period. These choices wi affect the amount of income you get. Your income wi be paid directy into your UK bank or buiding society account.

5 What are the charges? Product and investment charges We take any charges into account when we work out the initia income you receive and when we decide the bonuses to add to your With Profits Pension Annuity each year. Your iustration shows our charges and the effect they may have on your income over time. If commission is being paid to your adviser, this is covered within the pricing of the annuity and wi be shown on your iustration. If we need to rewrite the terms of your With Profits Pension Annuity due to any of your information being incorrect or incompete, then we wi charge you 40 each time. Adviser charges If you have asked us to pay an adviser charge from your pension fund, this wi be shown on your iustration. What about tax? Your With Profits Pension Annuity payments wi be treated as earned income and taxed according to your persona circumstances. We wi normay make your With Profits Pension Annuity payments after we have deducted the tax payabe. Any income paid to your or your dependant s estate from your With Profits Pension Annuity may be subject to inheritance tax. The Government has put a imit on the tota vaue of a retirement benefits (excuding State pensions) that you can normay take without paying a tax penaty. The imit is caed the ifetime aowance and the tax is caed a ifetime aowance charge. You shoud aready be aware if you are ikey to be affected. Your financia adviser wi be abe to give you more detais. Pease note, we ve incuded ony a genera tax summary and individua circumstances may differ. Tax rues can change. Your financia adviser can give you more detais about your tax position. Can I change my mind? You have the option to cance your With Profits Pension Annuity: At any point before your annuity pan starts, or Up to 30 days from the date that you receive our confirmation that your annuity pan has started. If you choose to take a tax-free cash sum and decide to cance your annuity: before the tax-free cash sum is paid, we can return the funds to the transferring pension scheme if you gain their agreement that they are wiing to accept the pension funds back, or after we or another provider have paid the tax-free cash sum, it cannot be returned and you must use the remaining pension fund to buy another product that provides you with an income in retirement, either from us or another provider. If you do not do this within 6 months of the tax-free cash sum being paid, it wi no onger be tax-free and wi become subject to tax charges. If you want to cance your appication for a With Profits Pension Annuity before the pan has started a you have to do is te us. In order to cance the annuity pan after it has started, you must: Sign and return the canceation form within the 30 day period, which you can find at the back of your iustration. Return any income payments we may have aready paid, by cheque made payabe to Aviva. Pease post this to the address on page 6 under the How to contact us section. Gain agreement from an insurance company to receive the funds so that they can provide you with an income in retirement. Where you have asked us to pay an adviser charge and this has aready been paid it wi not be refunded. If the canceation form is not returned the annuity pan wi continue.

6 How wi I know how my pan is doing? We send you a yeary statement. How to contact us Remember your financia adviser wi normay be your first point of contact. They have provided you with information that contains their contact detais. If you ve any questions at any time, you can phone, e-mai, or write to us. Ca us on Lines are open Monday to Friday 8.00am-6.00pm. We may monitor cas to improve our service. E-mai existingannuity@aviva.com Office address Aviva Annuity Contact Centre PO Box 520 Coegate Norwich NR1 3WG Other information How to compain If you ever need to compain, you can contact us at: Aviva Customer Reations PO Box 520 Norwich NR1 3WG Teephone number: Emai: contactus@aviva.com Lines are open Monday to Friday 8.00am-8.00pm, Saturday 8.30am-5.00pm and Sunday 10.00am-4.00pm. 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 Website: Terms and conditions This Key Features document gives a summary of Aviva s With Profits Pension Annuity. It doesn t incude a the terms and conditions. You can find further detais of the benefits and options avaiabe in the terms and conditions document. If you woud ike a copy, pease ask your financia adviser or contact us direct. Law The aw of Engand wi appy in ega disputes and your contract wi be written in Engish. We aways speak and write to you in Engish. We re reguated by the Financia Conduct Authority: The Financia Conduct Authority 12 Endeavour Square London E20 1JN We re aso reguated by the Prudentia Reguation Authority: The Prudentia Reguation Authority 20 Moorgate London EC2R 6DA Potentia conficts of interest Occasions can arise where Aviva pc Group Companies, or their appointed officers, wi have some form of interest in business which is being transacted. If this happens, or the Aviva Group becomes aware that its interests, or those of its officers, confict with your interests, we wi take a reasonabe steps to manage that confict of interest, in whatever manner is considered appropriate in the circumstance. This wi be done in a way which ensures a customers are treated fairy and in accordance with proper standards of business. Further detais of our conficts of interest poicy are avaiabe on request. Where, despite a efforts to manage a confict of interest, the confict of interest cannot be prevented, we wi discose it to you before you commit to taking out this product.

7 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. Aviva staff remuneration Aviva staff are saaried and they receive an annua bonus based upon the overa performance of the Aviva Group. Some members of our distribution team may aso receive additiona bonus, a proportion of which reates to their saes performance. Sovency Financia Condition Report Every year we pubish a Sovency and Financia Condition report which provides information about our performance, governance, risk profie, sovency and capita management. This report is avaiabe for you to read on our website at Compensation Quaified advisers wi recommend that you buy products suitabe for your needs. You have ega rights to compensation if, at any time, it s decided that you ve bought a pan that wasn t suitabe for your needs at that time. The Financia Services Compensation Scheme covers your pan. If Aviva becomes insovent and we are unabe to meet our obigations under this pan, the scheme wi normay cover you for 100% of the tota amount of your caim. For further information, see or teephone

8 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. Lines are open Monday to Friday 8.00am-8.00pm, Saturday 8.30am-5.00pm and Sunday 10.00am-4.00pm. Aviva Life & Pensions UK Limited. Registered in Engand No Aviva, Weington Row, York, YO90 1WR. Authorised by the Prudentia Reguation Authority and reguated by the Financia Conduct Authority and the Prudentia Reguation Authority. Firm Reference Number aviva.co.uk AN /2018 Aviva pc