Annual bonuses on with-profits bonds down 40% as terminal bonuses fall to almost zero

Annual bonuses on with-profits bonds have fallen more than 40% over the past four years while term...

Annual bonuses on with-profits bonds have fallen more than 40% over the past four years while terminal bonuses have dropped by up to 100%. With annual bonuses at around 3% today, those using the 5% deferral rule will now be eating into capital. Investment Week conducted a survey of rates from leading providers, looking at the announced bonus rates over the past four years from Prudential, Scottish Widows, Standard Life, Scottish Equitable, Norwich Union and Clerical Medical. While groups have been making small percentage reductions since 1999, the total cumulative drop shows ho...