Rewards
As a long-term savings vehicle, our Flexible Pension Plan (FPP) rewards your clients who save more and over a longer period. Depending on the charging option chosen, your clients will benefit from either a fund bonus or a fund value rebate.
Fund bonus
This is allocated with the establishment charge option and provides a fund bonus of up to 4% after 10 years. How much is paid depends, of course, on the level of contributions paid throughout the 10-year period - see table below.
| Effective number or original contributions paid (whole years) | % of bonus payable | When is the bonus paid? |
|---|---|---|
| 10 years | 4% | At the end of year 10 |
| 9 years | 3% | The end of year 10 or the point of exit if earlier |
| 8 years | 2% | |
| 7 years | 1% | |
| <7 years | 0% |
You can find full details of the fund bonus in our Adviser guide.
Fund value rebate
This is paid with the financial adviser charge and additional annual management charge options. Each month, we calculate the total value of all contributions to the plan. If the total fund value is £20,000 or more, we'll add additional units to the plan, equivalent to a fund value rebate of a percentage of the total plan value:
| Fund value | FVR |
|---|---|
| <£20,000 | 0.00% |
| £20,000 - £249,999.99 | 0.50% |
| £250,000+ | 0.60% |
You can find full details of the fund value rebate in our Adviser guide