Wesleyan Assurance has slashed its reversionary bonus rates on its unitised with-profit pension contracts from 6.75 per cent to 6 per cent.
The move follows a volatile investment year which saw dividend yields on equities and yields on fixed interest stocks fall.
Following industry wide trends the mutual assurer is expecting maturity values of longer term policies to continue to their downward trend. This follows the high returns of the 1980's which are steadily diminishing.
Despite the continued fall in bonuses across the industry, Wesleyan announced it was making an additional £13.2m available as part of its Extra Bonus customer loyalty scheme. These are in addition to normal bonuses and are made from the society's free assets.