Standard Life cuts bonus rates on pension products

Standard Life has cut both reversionary and terminal bonus rates on its unitised life and pensions p...

Standard Life has cut both reversionary and terminal bonus rates on its unitised life and pensions products by up to 15%. The mutual's rate cut will see final bonuses on its unitised life products drop from 4% to 3.25% and from 5% on pensions to 4.25%. As a knock-on effect from the changes to bonus rates, Standard Life has also lowered some surrender value reductions (SVR) on its life products. The SVR on conventional life policies has been reduced from 20% to 15%, however the SVR on pensions remains at 25%. The objective of these SVRs is to align withdrawal values with the market ...