Important information. AVC (Additional Voluntary Contribution) Key Features Illustration

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1 Important information AVC (Additional Voluntary Contribution) Key Features Illustration

2 About this Key Features Illustration The Financial Conduct Authority is a financial services regulator. It requires us, Prudential, to give you this important information to help you decide whether this Additional Voluntary Contribution option is right for you. You should read this document carefully so that you understand what you are buying, then keep it safe for future reference. You should also read the Key Features Document which will provide you with important information regarding the key risks and benefits of the AVC plan. The purpose of the illustration is to show you what you might get back if you were to invest regular monthly investments into your AVC plan. The figures in the What your benefits might be table are only examples and are not guaranteed they are not minimum or maximum amounts you might expect to get back. What you get back depends on a number of factors including: > how much paid in > how long investment held for > investment performance > charges and expenses A personalised illustration is available on request from Prudential. Our contact details can be found in the Key Features Document. We will send you annual statements to help you keep track of your investment. Please call us if you have any questions on Opening hours are 8am to 6pm, Monday to Friday (GMT).

3 Important information please read before continuing These figures have been adjusted to allow for inflation. Inflation will reduce the buying power of what you could get back from your pension in the future. The figures are based on an assumed inflation rate of 2.5% per year. Actual inflation could be more or less than this and could reduce what you can buy in future with all your savings and investments. This projection shows an example of the pension you might get at your chosen pension age in today s prices. This means the amounts shown give you an idea of what your pension could be worth taking into account the assumed effects of inflation. The actual buying power of your pension could be higher or lower than the amount shown. Your fund could be more or less than this and you may get back less than the amount paid in. You do not have to buy an income with your AVC fund, there are a number of options available to you. More details on your options can be found in your Key Features Document.

4 What your benefits might be When calculating your illustration we have used the following assumptions. Projected fund value assumptions > Annual growth rate of 2.5% (this is based on an assumed inflation rate). > There is an ongoing Annual Management Charge of 0.75%. > Your regular payments will increase by 1% each year. > Basic rate tax relief added to net contributions. > tax & pension legislation do not change. Taxation will depend on you personal circumstances and may change in the future without notice. Annual pension assumptions > The pension quoted in the table will be paid monthly from retirement until death if you do not take 25% tax free cash. > It will increase in line with RPI (Retail Prices Index). > If you die the payments will cease with no dependents benefits payable. Your Age Initial Retirement Payment Policy Term Age Projected Fund Value Annual Pension Amount ,200 2, ,000 2, ,000 2, ,000 4, ,600 1,340

5 What are the Charges? For this illustration we have assumed an Annual Management Charge of 0.75% of the value of the fund. If your fund is valued at 500 throughout the year, this means we charge 4 that year. If your fund is valued at 7500 throughout the year, we will charge 60. Your actual incurred Annual Management Charge could be different depending on the fund you choose for your AVC plan. Please refer to your Key Features Document for more detail on the charges applicable to your plan. Arrangement Costs We will incur associated sales costs of approximately 61 for arranging your plan. This cost has already been included in the charges detailed and does not represent an additional charge to be taken from your plan. Tax Relief Any contributions to your AVC plan will include tax relief at your marginal rate. This means that for basic rate tax payers every 100 you pay into your plan it will only cost you 80. If you are a higher rate tax payer it will cost you 60 and for additional rate payers it will cost 55.

6 "Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AUTA /2017