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 client's income will be guaranteed to not fall below the minimum income shown in their policy schedule.
Key considerations reflected in the Declared Investment Returns are:
- 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.
