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Managed Pension Account

The Managed Pension Account is a regular premium investment solution designed for regular savings over the medium to long term to help finance your retirement.

Through the Managed Pension Account, an extensive range of managed, sector and specialist fund links are available – so as your investment objectives change, so can your choice of funds, simply and quickly.

5% extra allocation

There is an extra 5% allocation (105%) with each payment in the first Account year - that means that for every £100 paid Royal Skandia will invest £105 for you. All other regular and single payments are invested at 100%. However, if you increase the amount of your monthly payment Royal Skandia will ensure that every payment increase will receive an extra 5% as well.

 

Bonus of up to 4%

At maturity, Royal Skandia will boost your investment further by adding a bonus of up to 4% (please refer to the Account Terms for further information), a helping hand to exceed your investment objectives.

 

Benefits

Regular premium savings with flexibility to pay additional lump sum premiums at any time.

105% allocation for regular premiums in year one and 100% thereafter.

105% allocation of any premium increase (in excess of previous highest premium amount) for one year.

Loyalty bonus of up to 4% of policy value at maturity.

Automatic Premium Escalation Option to increase premiums by 5% or 10% each year to maintain the purchasing power of the policy. Applies to credit card payments only.

Choice of premium payment methods.

Death benefit of 101% of allocated units at the selling price at no extra cost.

Changing your choice of funds is currently free of a Royal Skandia administrative charge. This way, you are not 'locked' into the fortunes of a fund or fund management group that may no longer be suitable.

An early encashment charge may be levied on any full or partial withdrawals that you make and for regular premium policies no encashments can be made for the initial period between 5 and 24 months.

 

Risks

The value of fund units can go down as well as up and investment growth cannot be guaranteed.

If you cash in the bond early, or take withdrawals that exceed the growth, you may get less back than you paid in.

If you invest in a fund that holds investments in another currency, there may be additional risks because of exchange rate fluctuations.

 

Tax-efficient growth

As Royal Skandia is located in the tax-efficient international finance centre of the Isle of Man, your investment will grow virtually tax free.

Royal Skandia is not currently liable to income tax, capital gains tax or corporation tax on its funds linked to policies. Some dividends may be subject to a tax deduction in the country where the income was produced, but once inside a Royal Skandia policy the investment can accumulate free of tax.

Thanks to this, your investment will grow more efficiently.

Your personal tax consequences will depend on many factors, and you may have a personal tax liability in respect of your policy. This will largely depend on your country of residence. It is therefore important that you seek professional advice before proceeding with any investments.

 

Policyholder protection and peace of mind

Of all the major offshore centres, the Isle of Man is one of only a few that has a statutory compensation scheme for life assurance companies. This means that Royal Skandia investors benefit from protection wherever they reside.

 

Who is eligible?

The minimum and maximum age limits for investment are 18 and 59 respectively. The Managed Pension Account is designed for international investors and is not available to residents of the UK.

 

Minimum premiums

  • Minimum initial premiums:
    Single premium: £1,000/$1,500/€1 500.
    Regular premiums:
    Monthly: £350/$525/€525.
    Quarterly: £1,050/$1575/€1 575.
    Half-yearly: £2,100/$3,150/€3 150.
    Yearly: £3,500/$5,250/€5 250.

 

More information

This page is only intended as a general indication of the Managed Pension Account's structure. More information on the Managed Pension Account can be found in the client brochure below.

Managed Pension account – client brochure pdf

To download these documents, you need to have Adobe® Reader® installed – Get Adobe Reader

For more information, and advice on the suitability of this Account, please contact your financial adviser.

Investors should be aware that the value of unit-linked contracts is not guaranteed and the prices of units can fall as well as rise. Where a fund invests in securities designated in a different currency to the fund, the value of the fund may rise and fall purely as a result of exchange rate fluctuations. Royal Skandia can give no guarantee that tax reliefs and the tax treatment of funds will remain the same in the future. The value of any reliefs will depend on individuals' circumstances.

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