Prudential has cut terminal bonus rates on its Prudence Bond and personal pensions. Terminal rates for both are down 0.25 per cent to 4.5 per cent and 5 per cent respectively.
A total of £2.8bn will be added to policies in the UK with-profits funds. On a 20 year personal pension policy the payout will be £190,941 down from £203,930 last year based on a male aged 30 paying £200 per month.
Reversionary bonuses on unitised life business are down to 4.5 per cent from 4.75 per cent, and on unitised personal pensions down to 5 per cent from 5.25.