Standard Life has reduced annual bonus rates for 600,000 with-profits savers with the provider’s ‘Heritage’ investment fund delivering returns of 7.9 per cent during 2012.
The insurer has cut bonus rates on unitised life plans from 0.75 per cent to 0.5 per cent and unitised pension plans from 1 per cent to 0.5 per cent.
A spokeswoman says around 600,000 people will be affected by the decision, which has been made to give the provider greater investment flexibility.
Annual bonuses on the Standard Life with-profits bond have been held at 2.5 per cent.
Standard Life with-profits communications manager Margaret Flaherty says: “We are pleased to say that customers have seen a year-on-year increase in the value of their plan.
“In the last year a typical pension customer has seen a return of 7 per cent on their plan while a typical endowment customer has seen a return of 5 per cent.”
At 31 December 2012 the asset mix and investment return details were: