Scottish Widows has announced it is cutting bonus rates on many with-profits policies. Unitised with-profits life and pension policies regular bonus rates are down between 0.5 per cent and 1 per cent, while conventional life policy bonuses will remain the same. However, most conventional pension policies will see no regular bonuses.
The changes take effect from January 1 and see final bonus rates on with-profits policies generally down.
At the same time cash-in values have risen by as much as 9 per cent over 2003 and regular bonus rates on the flexible options bond growth fund are up from 4 to 5 per cent and those on new business into the flexible options bond income fund are up to 4 per cent from 3.75 per cent.