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PIPA Declared Investment Returns

We aim to add declared investment returns (DIR) to provide steady growth.

These will vary from time to time (and may be negative and reduce your client's income). We'll add any DIR to your client's basic annuity after allowing for the chosen assumed investment return (AIR). If the DIR added is higher than your client's chosen AIR, then their income will increase. Similarly, if the DIR added is lower than your client's chosen AIR, then their income will decrease.

Your income will be guaranteed to not fall below the minimum income shown in your policy schedule.

Declared investment returns reflect:

  • Investment performance of our main with-profits fund
  • The annual charge applied
  • Our current approach to smoothing
  • Our own and/or industry mortality experience (we look at trends of when people die) and how we think they might change.

We currently declare investment returns four times a year - they will apply from 1 February, 1 May, 1 August and 1 November. The DIR applied will relate to the declaration on or immediately preceding the policy anniversary and will depend on the entry date of the Pension Income Plus Annuity.

Recent Declared Investment Returns

Our next investment returns will be declared in October 2022 for policies with anniversaries during the quarter beginning 1 November.

Our most recent declared investment returns are shown here:
Entry-Date in the quarter beginningDIR
01 May 20124.50%
01 May 20134.50%
01 May 20144.50%
01 May 20154.50%
01 May 20164.50%
01 February 20127.50%
01 February 20137.50%
01 February 20147.50%
01 February 20157.50%
01 February 20167.50%
01 November 20117.25%
01 November 20127.25%
01 November 20137.25%
01 November 20147.25%
01 November 20157.25%
01 November 20167.00%
01 August 20127.50%
01 August 20137.50%
01 August 20147.25%
01 August 20157.25%
01 August 20167.00%

In addition to declared investment returns, Pension Income Plus Annuity (PIPA) policies benefit from mutual bonus and exit bonus. Mutual bonus uplifts policyholder income annually by the most recently declared rate. The most recent declaration was 1%.

Exit bonus has been applied to policyholder income as a one-off uplift. The current rate of exit bonus can go up or down resulting in increases or decreases to policyholder income.
In the unlikely event that our financial strength was to reduce to an unacceptable level, both mutual bonus and exit bonus can be reduced or removed entirely. In these circumstances, we currently expect to reduce the exit bonus first and then we’d look at potentially reducing the mutual bonus.

We add mutual bonus and exit bonus as an addition to the income you receive, before allowing for any guarantees. These bonuses do not increase your guaranteed minimum income.

Discover more about our mutual bonus and exit bonus.

Contact Phone

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0800 085 0250

9am - 5.30pm Mon-Fri

TextDirect: first dial 18001. We will record or monitor calls for training and auditing.