Scottish Mutual is offering enhanced product terms on its with-profits annuity. This includes a minimum income guarantee and the options to change the anticipated bonus rate or convert to a ScotMut traditional non-profit annuity.
ScotMut says non-profit annuities currently account for over 80 per cent of the pension annuities market. But it anticipates the with-profits annuities market will grow significantly because of the perceived poor value of non-profit annuities.
Minimum purchase price of the with-profits annuity is £20,000 and the maximum age limit to invest is 75. ScotMut says all charges will be built into the starting level of annuity offered and bonuses declared.
There is an annual bonus rate of between 0 per cent and 5.5 per cent which can be changed at any time once the policy has been in force for one year. If the with-profits annuity is converted into a non-profit annuity, it cannot be converted back.