Key features of the Flexible Retirement Plan

Key Features of the

Flexible Retirement Plan

Please read this document along with your personal illustration (if you have one) before you decide to buy this

plan. It’s important you understand how the Flexible Retirement Plan works, the benefits and associated risks.

We would like everyone to find it easy to deal with us. Please let us know if you need information about our

plans and services in a different format.

All our literature is available in audio, large print or braille versions. If you would like one of these please contact

us using the details on the last page.

The Financial Conduct Authority is a financial services regulator. It requires us, Prudential, to give you this important

information to help you decide whether our Flexible Retirement Plan is right for you. You should read this document

carefully so that you understand what you are buying, and then keep it safe for future reference.

Contents

About the Flexible Retirement Plan 4

Its aims 4

Your commitment 4

Risks 4

Other documents you should read

This document gives you key information about the Flexible Retirement Plan. If you want more detail

on specific points, please read the following documents. We have highlighted when they are relevant

throughout this document.

They’re all available from your adviser, or direct from us. Details on how to get in touch are on the last page.

• Fund Guide

This explains your investment choices.

• Your With-Profits Plan – a guide to how we manage the Fund (PruFund range of funds)

This provides information on how our With-Profits Fund works, and our current approach to managing it.

• Your With-Profits Plan – a guide to how we manage the Fund (Prudential Unitised With-Profits Plans and

Cash Accumulation Plans)

This provides information on how our With-Profits Fund works, and our current approach to managing it.

• Market Value Reduction – a clear explanation

This explains what a Market Value Reduction is, together with information about why and when these

may apply.

• Technical Guides

Gives you detail on the terms and conditions of the contract:

• Pru Flexible Retirement Plan – Personal Pension option

• Pru Flexible Retirement Plan – Drawdown option

Is the Flexible Retirement Plan right

for me?

The FRP may be right for you if you want a plan that offers

wider investment options than are generally available

for personal pensions, including choosing and managing

your own investments in a Self-Invested Personal Pension

(SIPP). SIPPs can also have higher charges than other

personal pensions or stakeholder pensions. For these

reasons, SIPPs tend to be more suitable for large funds

and for people who are experienced in investing.

If you are between 16 and 75 years of age, and resident

in the UK you can take out the Flexible Retirement Plan

(Personal Pension). If you wish to enter Drawdown, which

is explained in the “How flexible is it?” section, you can do

this from age 55 (57 from 6 April 2028, unless you have a

protected pension age) to before your 89th birthday.

Under the terms of this contract you are currently required

to take your benefits by age 75.

If you are unsure whether the FRP is right for you, you

should speak to your financial adviser. If you don’t have

one, you can find an adviser at pru.co.uk/find-an-adviser

Is this a stakeholder pension?

No, the government has set minimum requirements

that companies must meet for a stakeholder pension.

These cover things like payments, charges and terms

and conditions.

Charges for the plan may be higher than for a

stakeholder pension.

A stakeholder pension may meet your needs as well as

this plan, and these are widely available.

How flexible is it?

The FRP allows payments to be easily changed and offers

a wide range of investment options. It can provide for

consolidation of existing pension funds, phased retirement

and access to a range of annuities.

The FRP offers three options, which can be used

individually or together:

• Personal Pension plan (PPP)

• Self-Invested Personal Pension plan (SIPP)

•

Drawdown plan – this plan allows you to transfer

pension savings to a drawdown option.

What’s a SIPP?

A SIPP is a personal pension plan that allows you to invest

pension savings in assets you choose, from an allowable

range. These can include stocks, shares and commercial

property. With a SIPP you have access to a much wider

choice and type of investment than you do with other

personal pension plans. You can switch easily between

the investment options available, typically with the help of

your financial adviser or an investment manager.

What is Drawdown?

You can normally choose to take up to 25% of your

pension pot as a tax-free lump sum.

You then move the rest into one or more funds in the

drawdown option that allows you to take an income at

times to suit you. Some people use it to take a regular

income. The income you receive might be adjusted over

time depending on the performance of your investments.

Once you have moved your funds to a drawdown option

you can’t then switch them back to an investment

only option.

The FRP has two drawdown options:

Capped drawdown – restrictions apply to the amount

of income that can be withdrawn each year. Capped

drawdown can only be taken if transferring from an

existing capped drawdown arrangement.

Flexi-access drawdown – a form of drawdown which

allows you to take an unlimited amount of income or lump

sums from a pension fund.

Questions & Answers

If you enter drawdown, you need to tell us the age

when you intend to end your drawdown option plan

and perhaps use the remaining fund to buy an annuity –

your Anticipated Annuitisation Age (AAA) – it has to be

between 56 (58 from 6 April 2028, unless you have a

protected pension age) and 99 and at least one year after

the start of your plan.

How much can I pay into my plan?

The maximum payment you can pay into FRP is

£1,000,000. ln some circumstances we may accept

payments larger than £1,000,000. If you would

like to invest more than £1m, please speak to your

financial adviser.

The minimum regular payment required to start the plan

is £100 a month or £1,200 a year after which there is no

minimum increase.

The minimum single payment required to start the plan

is £5,000.

Additional single payments to your plan need to be at

least £200.

If you choose to invest in the Self-Invested Fund (SIF)

under either of the SIPP options, you need to invest at least

£10,000 into that fund. More information about the SIPP

options can be found in the “Can I invest in a SIPP?” section.

What happens if I move overseas?

If you move overseas and are no longer a resident in the

UK for UK tax purposes, you will be unable to top up your

plan unless you are a crown servant (or the spouse/civil

partner of a crown servant), serving overseas.

Can I transfer money in?

Yes, if you have a pension plan with another provider, you

can transfer the value of it to this plan.

Your existing plan might have valuable guarantees you’d

lose if you transfer your pension pot. You should speak to

a financial adviser before you make a decision.

Where you are making more than one transfer at the

same time we may place your money in an FRP Holding

Account until we receive all our requirements. For more

information, see the Technical Guides.

What if I already have a SIPP?

It may be possible to transfer your existing SIPP into your

Personal Pension Plan without having to sell any of your

existing assets. This is called an “in specie” transfer. Your

financial adviser can help you decide whether this is right

for you.

Where are my payments invested?

With the FRP you have a number of investment choices

for your pension fund, including:

• A range of over 130 investment funds from Prudential

and other fund managers. This includes the Prudential

With-Profits Fund (including our PruFund range), and

unit-linked funds from many leading fund managers.

• A ready-made Personal Pension lifestyle option which

helps reduce your exposure to investment risk as

retirement approaches.

• Self-lnvested Fund options that allow you to invest in a

wide range of asset types other than our funds.

Choosing funds

Different funds invest in different types of assets for

example, some only invest in property, others invest

directly in the stock market and others invest in a wide

range of assets. Each fund has its own level of risk and

potential for growth. Usually, funds with more potential

for growth carry more risk. Remember, the performance of

the funds isn’t guaranteed. The value of your investment

can go down as well as up so you may get back less than

you put in.

You choose which funds you would like to invest your

money in, from a wide fund range that we offer. You can

invest in more than one fund at a time, up to a maximum

of 20 and we use your money to buy units in those funds.

We may delay the buying, selling and switching to or

from certain funds. These delays will only apply in certain

circumstances and if this applies to you, we’ll let you know.

For more information, please read your Technical Guides.

Your financial adviser can give you details about the funds,

before you choose where to invest. You can also refer to

our Fund Guide.

The following funds are invested in Prudential’s

With-Profits Fund:

• With-Profits Fund

• PruFund Cautious Fund

• PruFund Protected Cautious Fund*

• PruFund Growth Fund

• PruFund Protected Growth Fund*

• PruFund Risk Managed 1 Fund

• PruFund Risk Managed 2 Fund

• PruFund Risk Managed 3 Fund

• PruFund Risk Managed 4 Fund

* The PruFund Protected Funds are currently unavailable to

new investments. If you have previously invested in these

funds, you will continue to be invested in them.

If you have previously been invested in a Protected

PruFund Fund and switch out before the Guarantee Date,

you cannot reinvest in a Protected PruFund Fund. All other

PruFund Funds can be selected for investment at the start

of your plan, or at any time after.

Any PruFund investment will initially be invested in a

holding account called a PruFund Account and switched

to your chosen fund on the next PruFund Quarter Date.

While the investment is in a PruFund Account, it increases

daily in line with the Expected Growth Rate (EGR)

applicable to that Account. During this time, product

charges will be applied, but the investment will not be

subject to any unit price adjustments, unit price resets, or

suspension of smoothing. There is an associated PruFund

Account for each fund in the PruFund Range of funds.

The PruFund quarter dates are 25 February, 25 May,

25August & 25 November (or the next working day if the

quarter date is a weekend or Bank Holiday).

You cannot choose the With-Profits Fund if you are within

10 years of your Selected Retirement Age (SRA) or in

Drawdown when you are within 10 years of Anticipated

Annuitisation Age (AAA), or aged 85 or over.

Although these funds are invested in the same underlying

fund, there are significant differences in the way that

returns are delivered. For more information please read

“How do you work out the value of my investment?”

What’s the Personal Pension lifestyle option?

The Personal Pension lifestyle option is designed to move

money from funds you choose into generally lower-risk

funds as you get older.

If you invest in the Personal Pension lifestyle option, you

can either:

• choose up to 18 funds to invest in initially, or

• invest all of your money in our default fund, the

Prudential Managed Pension Fund.

10 years before you are due to take your benefits, we’ll

start switching your money from the funds you’ve chosen

into generally lower-risk funds. By the time you are due to

take your benefits, all of your money will be in generally

lower-risk funds.

You can find more information about this option in the

Fund Guide. Your adviser will give you a copy of this

document or you can contact us using the details on the

last page. Alternatively, you can get it from our website

at ‘find out what funds I am in’ at pru.co.uk/existing-

customers/products/flexible-retirement-plan.

The With-Profits fund, the SIF and the PruFund Protected

Funds are excluded from the lifestyle switching described

above. The lifestyle option cannot be chosen if you only

invest in these funds.

Unit-linked funds

Payments into unit-linked funds will buy units in the

chosen funds. The price of each unit depends on the value

of the investment in the fund and also whether more

money is going into or out of the fund. We work out the

value of your plan based on the total number of units you

have in each fund. So, if the unit prices rise or fall, so will

your plan value. Money in the various funds is invested in a

wide range of shares, corporate bonds, government stocks

and commercial property in the UK and abroad.

How unit-linked funds invest

Some of the Prudential funds listed in your Fund Guide

may invest in ‘underlying’ funds or other investment

vehicles. Have a look at a fund’s objective and that will tell

you where it invests – including if that’s in an underlying

fund or funds.

If the Prudential fund is investing in just one underlying

fund then it’s what’s known as a ‘mirror’ fund, as the

performance of the Prudential fund broadly aims to reflect

the performance of the underlying fund it invests in. The

performance of our Prudential fund, compared to what

it’s invested in won’t be exactly the same. The differences

between the underlying fund and our fund can be due to:

• additional charges,

• cash management (needed to help people to enter and

leave our fund when they want),

• tax,

• timing of investments (this is known as a fund’s

dealing cycle, it varies between managers and can be

several days).

With-Profits Funds

We work out the value of With-Profits investments

differently. A With-Profits investment is one that aims to

smooth some of the short term highs and lows of the fund

over the period of time that you hold the plan. So, in theory

you should see a steadier return year on year, rather than

watching the value of your Plan fully reflect the rise and

fall in investment markets. Your payments are pooled with

those of other Prudential With-Profits investors to form

a fund.

We invest this fund in a wide range of investments

including company shares, property, Government bonds,

company bonds and cash deposits. This is not guaranteed

and you must consider that the value of your investment

can go down as well as up so you might get back less

than you put in.

We allocate your share of the profits of the fund by adding

bonuses. There are currently two types of bonus:

• regular, which we add throughout each year. We can

change the rate of regular bonus at anytime without

telling you beforehand, although once added these

bonuses are guaranteed on death and at your selected

retirement age,

• final, which we may pay when you take money out of

the With-Profits Fund, although this may vary and is not

guaranteed. The final bonus can be reduced or removed

at any time, without warning.

You can get further information about this from Your

With-Profits Plan – a guide to how we manage

the Fund.

What’s a Market value Reduction (MVR)?

If you take money out of the With-Profits Fund, we may

reduce the value of your fund if the value of the assets

underlying your plan is less than the value of your plan

including all bonuses. This reduction is known as a Market

Value Reduction (MVR). It is designed to protect investors

who are not taking their money out and its application

means that you get a return based on the earnings of the

With-Profits Fund over the period your payments have

been invested.

We apply any MVR to your plan’s value including regular

and final bonuses. Please read Your With-Profits Plan – a

guide to how we manage the fund (Prudential Unitised

With-Profits Plans and Cash Accumulation Plans) for

more information on bonuses. An MVR will reduce the

value of your plan and, if investment returns are low, you

may even get back less than you have invested in your plan.

We guarantee not to apply an MVR at your Selected

Retirement Age or on any claims in the event of your death.

Our current practice on applying an MVR

We may apply a Market Value Reduction to any full or

partial withdrawals, including Ongoing or Ad hoc Adviser

charges, switches or transfers out of the With-Profits

Fund. An MVR may apply if moving funds from a Personal

Pension to Drawdown on a date other than your Selected

Retirement Age.

We reserve the right to change our current practice on

Market Value Reductions at any time, without prior notice,

and this would apply to existing plans and any new plans

or top-ups.

Examples of reasons for a change would include

significant changes in the investment market or

because the number of people moving out of the fund

increases substantially.

For more information on our current practice and when we

may apply an MVR, refer to our brochure Market Value

Reduction – A clear explanation.

For more information about how the With-Profits Fund

works, please read Your With-Profits Plan – a guide to

how we manage the Fund (Prudential Unitised With-

Profits Plans and Cash Accumulation Plans).

The PruFund range of funds

The PruFund funds have an established smoothing

process which uses Expected Growth Rates, and where

required, Unit Price Adjustments, to deliver a smoothed

investment journey. It aims to provide you with some

protection from the extreme short-term ups and downs of

direct investment. However, the value of your investment

can go down as well as up so you might get back less

than you put in.

For the PruFund range of funds, we may decide to reset

the unit price of a PruFund Fund to the unsmoothed

price on a particular day, to protect the With-Profits Fund.

There may also be occasions where we have to suspend

the smoothing process for one or more PruFund

Funds for a period of consecutive days, to protect the

With-Profits Fund.

For more information about how the PruFund Funds work,

please read Your With-Profits Plan – a guide to how we

manage the Fund (PruFund range of funds), and refer to

the Technical Guides, which are available on request.

PruFund Protected Fund

If you have already selected a PruFund Protected Fund,

a guarantee applies at the end of the selected term (the

Guarantee Date). The guarantee has its own charge and

this is paid for the whole of this term.

We will calculate the Guaranteed Minimum Fund (GMF) on

your existing investment in your PruFund Protected Fund.

This is the initial amount you invested after allowing for

any initial product and adviser charges.

Your GMF will be reduced proportionately for any

withdrawals, including adviser charges, or switches out

between investment and the Guarantee Date, and will be

shown on your annual statement.

Where you are invested in at least one other fund in

addition to a PruFund Protected Fund, then you can elect

for your PruFund Protected Fund to be excluded from the

deduction of any Ongoing or ad-hoc Adviser Charges.

The guarantee will only apply at the end of the selected

term. If you fully switch out of a PruFund Protected

Fund or cancel your plan before the end of the selected

guarantee term, then the guarantee will not apply and

the charge will stop. You cannot switch back in to any

available PruFund Protected Fund.

We check the value of your investment at the Guarantee

Date. If its value has dropped below the GMF, we restore it

to that value. We do this by adding units to your plan. We

then switch your investment to the fund of your choice, or

to the corresponding PruFund Fund.

Can I invest in a SIPP?

You can invest part or all of your plan in a SIPP. You do this

by choosing the SIF.

If you invest in the SIF, you have two SIPP options. These

are the FundSlPP option, and the Full SIPP option.

The FundSlPP option lets you include investment in up to

20 funds from the fund supermarket offered by Cofunds

in your SIF. The Cofunds fund supermarket has a range of

around 1,500 funds.

The Full SIPP option allows you to include a much wider

range of assets in your SIF, from an allowable range that

includes shares, unit trusts and commercial property. See

our “SlPP Allowable Investments” factsheet, for more

information on the allowable range. Your adviser can give

you this document.

You can appoint your own investment manager or broker

to carry out transactions for you. Alternatively, we can

arrange for you to make transactions using our preferred

third-party broker.

The SIPP option you choose affects the charges that we

apply to your plan. For more information please see “What

are the charges and costs?”. ln some circumstances you

may be able to invest in some of the funds we offer at a

lower cost through the Cofunds fund supermarket. Your

financial adviser can explain the possible options.

Curtis Banks Group Relationship

The SIPP option is available under the Prudential Flexible

Retirement Plan through the SIF.

It is provided through reinsurance to Curtis Banks Group.

All payments to the SIF will be credited to a bank account

opened by Curtis Banks Group for the purposes of the SIF,

until they receive your investment instructions.

The SIF is also an Externally-Linked Fund, because we

provide it through an external Life Assurance Company.

As with our other Externally-Linked Funds, there is no

contract between you and Curtis Banks Group; the

contract remains with Prudential.

However, Curtis Banks Group also deals with the day to

day operation of the SIPP option and the SIF, so in this

respect, they are acting as Prudential’s administrator

authorised to deal directly with you.

If Curtis Banks Group (or other reinsurer) becomes

insolvent there is a risk that we will not be able to recover

the full value of the investments under the member’s

SlF. If this situation arises and we cannot recover the

full value of the investments, Prudential will not be liable

for the shortfall. Because the SIF is an Externally-Linked

Fund, you would not be able to claim under the Financial

Services Compensation Scheme (FSCS). Please see

“Compensation” section for more information about FSCS.

Please see the Technical Guides for more information

about the Curtis Banks Group and how the SIF Operates.

Can I change my investments?

Yes, you can switch your money between funds at any

time and you can also change where you’d like any future

payments to be invested. We don’t currently charge you

for this but if this changes in the future we’ll let you know.

However, you can only invest in up to 20 funds at a time.

You can switch from PruFund Protected Cautious Fund

to PruFund Cautious Fund and from PruFund Protected

Growth Fund to PruFund Growth Fund at any time. The

switch will be processed on receipt of the request. All

other switches out of any of the PruFund Funds will be

made 28 days after we receive the request and using

the unit prices on the 28th day. Switch requests from a

PruFund Protected Fund on the guarantee date are not

subject to the 28 day delay. Only one switch can be made

per quarter, where the quarter dates are 25 February, 25

May, 25 August and 25 November, or the next working

day if the quarter date is a weekend or a public holiday.

This is in addition to any other switching restrictions

outlined in this document.

For full details on switching rules and to request a switch,

please complete the ‘Investment Alteration Form’. You can

get a copy of this form from your adviser.

Once a request has been made it cannot be cancelled.

If you fully switch out of a PruFund Protected Fund before

the guarantee date, you currently can’t switch back. You

can’t switch money in to a PruFund Protected Fund if you

are already invested in it.

There are a number of differences for switches involving

PruFund Funds, more details can be found in the

Technical Guides.

If you switch money out of the With-Profits

Fund, we may apply a Market Value Reduction.

For more information about this, please read

“Where are my payments invested?”

You cannot switch into the With-Profits Fund within

10years of your Selected Retirement Age.

What if I stop making payments?

You can stop paying or take a payment break and restart

later if your circumstances change. This will reduce your

future benefits.

Please remember that we’ll keep taking our charges, even

if you stop your regular payments. Charges and costs may

vary in the future and may be higher than they are now.

Can I transfer money out?

You can transfer your pension pot to another registered

pension scheme at any time. We do not charge you for

transferring to a new arrangement.

We may apply a Market Value Reduction if you transfer

money out of our With-Profits Fund. For more information

about this, please read the section ‘Where are my

payments invested?’.

To find more information on this subject, you should speak

to a Financial Adviser.

If you transfer money from the PruFund Funds, we may

make the transfer 28 days after we receive your request

and everything we need from you to make the transfer. In

these circumstances the transfer value will be the value of

the plan on the 28th day.

This delay will never apply to transfers at your Selected

Retirement Age or at age 75. Please refer to the Technical

Guides for further Information.

Finally, we may charge for selling assets in the SIF

Charges will depend on the investments you’ve chosen.

For more information please refer to “What are the

charges and costs?” section.

What if I’m moving money from the Personal

Pension option to the Drawdown option?

You may be moving some or all of your money as part of a

phased drawdown, which is where you take your tax-free

cash and income gradually over a period of time.

You can either invest in the same funds or switch to

different funds under the Drawdown option. When you

move your money out of the Personal Pension plan we sell

the units in the funds you were investing in and buy new

units for your Drawdown plan on the same day.

If you invested part of your Personal Pension plan in

the With-Profits Fund, we may apply a Market Value

Reduction when you convert it to the Drawdown plan. We

won’t do this if you move money to the Drawdown plan

at your Selected Retirement Age. If you move money in

the With-Profits Fund into the Drawdown plan, you must

have a minimum term of 10 years until your Anticipated

Annuitisation Age.

For the PruFund Funds, units are sold in the Personal

Pension plan and new units bought in the Drawdown

plan when you convert. This means that any PruFund

investments will start off in the relevant PruFund Account

under the new Drawdown plan and will switched to the

appropriate fund on the next quarter date.

Any guarantee from your investment in a PruFund

Protected Fund can be carried over into Drawdown but

you must keep the same amount invested in that fund

across both the Personal Pension and Drawdown plans.

Full details can be found in the Technical Guides.

What are the charges and costs?

The charges we may apply to your Plan are:

• Product Charges, including Annual Management

Charges and any charges for guarantees.

• Adviser Charges.

How all charges and costs affect your Plan is shown in

your illustration.

Please remember we’ll keep taking our charges, even if

you stop regular payments.

Our Product Charges may vary in the future and may be

higher than they are now. Further details of when we may

vary charges can be found in the Technical Guides.

Allocation rate

The allocation rate will always be l00%.

Annual Management Charge

We take an Annual Management Charge from each of the

funds you invest in (except the SIF).

For unit-linked funds, we deduct an Annual Management

Charge from the funds and this charge is already reflected

in the price of the units. The amount of charge we deduct

depends on the funds you choose to invest in and the

amount of your original investment. For more information,

please read your Fund Guide.

We calculate and take the charge for With-Profits

funds differently.

With-Profits annual charge

For With-Profits Funds, there are various costs involved

with setting up and managing your policy. We deduct

a charge from the With-Profits Fund each year to cover

these costs.

The charge isn’t explicit so you’ll not see it being taken

from your policy. It’s deducted from the underlying With

– Profits Fund and is already taken into account when we

calculate bonus rates for our With-Profits Fund. The With-

Profits Fund’s annual charge depends on the performance

of the With-Profits Fund, in particular the investment

return and our expenses. If, for example, over time

investment returns are higher then we’d expect to increase

the charges and if investment returns are lower we’d

expect to reduce the charges. The charge will depend

on the investment returns achieved and the expenses

incurred by the Fund (higher investment returns will be

associated with a higher charge and lower investment

returns will be associated with a lower charge). The

charge is currently expected to be approximately 1.26%

a year if the investment return in the With-Profits Fund

is 5% a year (gross of tax). More information on the

operation of the With-Profits Funds is explained in

Your With-Profits Plan – a guide to how we manage

the Fund.

Further costs

In addition to our charges, there may be further costs

incurred, which can vary over time. Where these are

applicable, they are paid for by the relevant fund and will

impact on its overall performance.

For more information on these further costs, please read

the Fund Guide.

With-Profits charge for guarantees

There’s a charge to pay for all the guarantees the

With-Profits Fund supports and we take this charge

by adjusting regular and final bonuses each year. We

guarantee not to apply a Market Value Reduction (MVR)

e.g. when payments are made because of death or at your

selected retirement age. Our current practice (which isn’t

guaranteed) may include additional circumstances when

an MVR isn’t applied. Please see ‘Where are my payments

invested?’ for more information.

The total deduction for guarantee charges over the

lifetime of your plan is not currently more than 2% of any

payment made from the fund. We’ll review the amount

of the charge from time to time. Charges may vary if, for

example, the long term mix or type of assets held within

the With-Profits Fund is changed.

For more information about bonuses and charges, please

read Your With-Profits Plan – a guide to how we

manage the Fund.

Annual Management Charge – PruFund Funds

We take the Annual Management Charge for PruFund

Funds by deducting a percentage of the units

every month.

If you have only invested in a PruFund Fund for part of a

month, we still take a full month’s charge.

PruFund Protected Funds – Guarantee Charge

If you are already invested in a PruFund Protected

Fund, the fund includes a guarantee which has an

annual charge. We take this charge by cancelling units

each month.

What if I’ve invested in either of the SIPP options?

There are fixed establishment and administration charges

to pay on investments in the SIF.

The charges for investing in the SIPP options depend on:

• The SIPP option you choose,

• The assets you invest in, and

• Whether you buy or sell any assets in the SIF.

SIPP Charges

SIPP charges may be higher than for Personal Pensions

and Stakeholder Plans or where the size of the fund is

relatively small, that is, under £50,000.

• Special care needs to be taken if you are planning to

invest in Commercial property as this can take a long

time to sell especially if the monies are required to pay

death benefits. If death benefits aren’t paid within two

years of notification there is a tax charge.

• If you borrow money to invest the return on the growth

may not cover the cost of the borrowing.

• If there are fixed charges these will have a greater

proportionate effect on smaller investments than they

will on larger ones.

SIPP options – Establishment and

Administration Fees

If you choose the FundSlPP option, we apply an Establishment

Fee of £150 and an Annual Administration Fee of £200.

If you choose the Full SIPP option, we apply an

Establishment Fee of £300 and an Annual Administration

Fee of £425.

While self-investment offers more flexibility than a

traditional insurance fund, charges can have a greater

impact on smaller funds. ln particular, for SIFs less

than £50,000, it is anticipated that the impact of the

Establishment Fee and the Annual Administration Fee is

likely to be more than 1% of the SIF each year.

SIPP options – transaction charges

• FundSlPP option: you don’t have to pay fees for buying

and selling assets in the Cofunds fund range.

• Full SIPP option: you may have to pay transaction fees

depending on the type of assets you buy and sell.

More information can be found in “A Schedule of Fees

– Self Invested Fund”, which is available on request, our

contact details on the last page.

The charges you will incur depend on your actual investment

activity. As we do not know which assets you will choose to

buy and sell in your SIF, your illustration has been produced

as if your transfer value is invested in a fund with an Annual

Management Charge (AMC) of 1% each year.

Do I receive any discounts?

You may benefit from discounts on the annual

management charge. We may give you a Fund Size

Discount depending on the size of your fund. Any final

bonus or MVR applicable to investments in our With-

Profits Fund will be excluded from this calculation of

the fund value. We also give you a Loyalty Discount

depending on how long you’ve invested in the plan.

Fund Size Discounts don’t apply to investments held

under the SIF or the FRP Holding Account.

We apply any fund size or loyalty discount monthly.

Fund Size Discount

The discount to the Annual Management Charge will

apply to the whole of your investment, not just the portion

above the threshold levels shown below.

Fund Size

Fund Size Discount from

Annual Management Charge

Up to £249,999 0.25%

£250,000 and over 0.30%

Loyalty Discount

If both discounts apply to your plan, we add them together.

Investment period

Loyalty Discount from

Annual Management Charge

Up to 9.99 years 0.05%

10 – 14.99 years 0.10%

15 – 19.99 years 0.20%

20 years or more 0.25%

While the Loyalty and Fund Size Discounts don’t apply

to investments in the SIF or FRP Holding Account, if

investments are transferred out of the SIF Fund and the

money reinvested in other funds within your plan, the

period of continuous investment includes the period you

were in the SIF.

Adviser charging

You agree with your Adviser how they will be paid for

the advice they provide to you. You can choose to pay

your Adviser directly or you may ask us to take Adviser

Charges from your Plan to pay your Adviser, or a

combination of both.

If you have asked us to deduct Adviser Charges from your

investment to pay your Adviser, full details will be shown

on your personal illustration. There are three different

types of Adviser Charges:

• Set-up Adviser Charges

• Ongoing Adviser Charges

• Ad hoc Adviser Charges

Your Adviser can provide further details on these options.

Any Adviser Charges paid from your FRP must be made

in accordance with HMRC rules to ensure they are not

considered unauthorised payments, which would be

subject to a tax charge.

Different Adviser Charging instructions may be given each

time a personal pension plan is set-up.

Set-up Adviser Charge

If you agree a Set-up Adviser Charge, this charge can

be taken from your Plan by Prudential and paid to your

Adviser. The Set-up Adviser Charge is taken from the gross

contribution, after basic rate tax relief has been applied.

For regular contribution plans a Set-up Adviser Charge

can be taken as a percentage of the regular contributions.

The charge will be deducted from each regular

contribution paid for an agreed period.

Set-up Adviser Charges can be fixed for the full duration of

the plan, or fixed for a specified period (up to 60 months),

with the option of continuing at a different rate until SRA.

For each single payment this one off Set-up Adviser

Charge can be specified and deducted as a percentage of

the initial investment, or as a fixed monetary amount.

For example, if you want to take a Personal Pension with a

£10,000 gross single payment and want to pay £500 as a

Set-up Adviser Charge, you will send a cheque for £8,000,

and we will invest £10,000 (expecting to receive basic

rate tax relief from HMRC at a later date). From the gross

contribution we will deduct £500, leaving the remaining

£9,500 invested in the Plan.

Set-up Adviser charges must be agreed at the start of

the plan. Once agreed Set Up Adviser Charges for regular

contributions can be reduced or stopped at any time.

Ongoing Adviser Charge

If you want Ongoing Adviser Charges to be deducted from

your Plan, you will agree with your Adviser the amount

you will pay for any ongoing advice. These charges can

be taken from the Plan by Prudential and paid to your

Adviser. They can be specified as a percentage of the fund

value (excluding any investment in SIFs) or a specified

monetary amount each year. The Ongoing Adviser

Charges can be paid monthly or yearly in arrears.

Prudential will pay these charges to your Adviser and full

details will be shown on your personal illustration.

You can request any Ongoing Adviser Charges to stop,

start, increase or reduce at any time by writing to us.

Ad hoc Adviser Charges

You may agree to pay your Adviser Ad hoc Adviser

Charges for advice received. These can either be taken

from any insured funds you have or from your SIF. These

charges can be specified as a percentage of your insured

fund value, or a monetary amount from your insured or

SIF fund(s). You can request an Ad hoc Adviser Charge be

taken from your plan and paid to your adviser by writing to

us or for your SIF to Curtis Banks Group at any time.

Ongoing and Ad hoc Adviser Charge deductions

Where Adviser Charges are to be taken from insured

funds these will be taken proportionally across all funds,

excluding SlF. Where there is investment in a PruFund

Protected Fund and/or the With-Profits Fund and at least

one other insured fund, you can choose not to have these

Adviser Charges deducted from the PruFund Protected

Fund or the With-Profits Fund.

If you take Ongoing or Ad hoc Adviser Charges from the

PruFund Protected Fund it will reduce the Guaranteed

Minimum Fund.

If you take Ongoing or Ad hoc Adviser Charges from the

With-Profits Fund, a Market Value Reduction may be

applied to your fund.

Where you choose to take an Ad-hoc adviser charge from

your SIF fund there must be sufficient funds in your SIF

bank account.

What might I get back?

The size of your pension pot will depend on many factors

such as:

• the amount that has been paid into the plan

• how long the payments have been invested

• the performance of the fund(s) you have invested in

• the age you choose to take your benefits

• how you take your benefits

• the amount of charges you’ve paid.

For an example of the income you could receive, please

see your illustration.

When can I take my benefits?

You can start taking your benefits from the age of 55,

even if you’re still working. You might be able to take your

benefits earlier than that if you’re in ill health.

The minimum age from which you can access your

personal or occupational pension will increase from 55 to

57 on 6 April 2028, unless you have a protected pension

age. State Pension age will increase from age 66 to age

67 for males and females between 6 April 2026 and

5 April 2028. These ages may change in future.

You can also opt for a phased approach. So you could

transfer parts of your pension fund into Drawdown or an

annuity over time and leave the rest in your pension plan.

For a Personal Pension, you can select your Selected

Retirement Age (SRA) which is the age at which you plan

to start taking your retirement benefits. Your SRA must

be between 55 (57 from 6 April 2028, unless you have

a protected pension age) and 75 years of age. You can

change your SRA after you have set up your plan if you

wish to. If you invest in the With-Profits Fund the term

from the date of request to the new SRA must be at least

five years and if you are reducing your SRA, the term from

the original date of investment in the With-Profits Fund to

the revised SRA must be at least 10 years.

If you wish to remain invested in a Personal Pension

beyond age 75 you will need to move to an arrangement

with another provider.

If benefits are taken any time other than your Selected

Retirement age or on your death, a Market Value

Reduction may apply to money taken out of our

With-Profits fund.

For PruFund Funds, we may delay any withdrawal by

28 days, using the unit price on the 28th day. This

delay will never apply to withdrawals at your Selected

Retirement Age (SRA).

Please refer to the Technical Guides for more information.

What choices will I have when I want to

take my benefits?

You’ve got different options to choose from when it comes

to taking your benefits. We’ll contact you as you approach

retirement to let you know which of these options we may

be able to offer you.

Depending on your choices, you might need to move your

pot to another pension to access some of these options or

to access them when you prefer.

• Flexible cash or income (also known as drawdown)

You can take out up to 25% of the money moved into

your flexible cash or income plan, in cash, tax-free. You’ll

need to do this at the start. You can then dip into the

rest as and when you like. You can also set up a regular

income with this option. Any money you take after the

first 25% may be subject to income tax.

• A guaranteed income for life (also known as

an annuity)

You can use your plan to buy an income for life. It pays

you an income (a bit like a salary) and is guaranteed for

life. These payments may be subject to income tax. In

most cases you can take up to 25% of the money you

move into your guaranteed income for life, in cash, tax-

free. You’ll need to do this at the start and you need to

take the rest as an income.

• Cash in your plan all at once

You can take your whole plan in one go, as a lump sum.

Normally the first 25% is tax-free, but on the remainder,

you could lose 20%, 40% or even 45% to income tax,

if it pushes you into a higher tax bracket (especially if

you’re still earning). You’ll need to plan how you provide

an income for the rest of your life.

• Take cash in stages

You can leave your money in your plan and take out cash

lump sums whenever you need to – until it’s all gone, or

you decide to do something else with what’s left. You

decide when and how much to take out. Every time you

take money from your plan, the first 25% is usually tax

free and the remainder may be subject to income tax.

• Take more than one option

You don’t have to choose one option – you can take a

combination of some or all of them over time, even if

you’ve only got one pension pot.

Whatever you decide to do with your pension savings –

you don’t have to stay with us. You should shop around

and depending on the choices you make, you may find

something more appropriate elsewhere, with alternative

features, investment options or charges.

Where can I get guidance about what to

do with my pension?

General guidance and information on all aspects of

pensions is available from MoneyHelper.

MoneyHelper Pensions Guidance

Money and Pensions Service

120 Holborn

London

EC1N 2TD

Telephone: 0800 011 3797

Website:

moneyhelper.org.uk/en/pensions-and-retirement

For people over 50, Pension Wise is also available. This

Government service from MoneyHelper offers guidance

to people with personal or workplace pensions on all the

options available for their pension savings. You can have a

free consultation online, over the phone and face to face.

Telephone: 0800 280 8880

Website: moneyhelper.org.uk/pensionwise

These services are free and impartial and using them

won’t affect your legal rights.

What about tax?

Investments in pension funds, in which registered pension

schemes are invested, are given important tax benefits.

They do not pay tax on investment income received or

capital gains. Some underlying investments, such as

dividends from company shares, will be paid out of taxed

profits, and the tax is currently not reclaimable.

Tax Relief

You’ll normally receive tax relief on your contributions.

For every £100 you pay into your plan, HM Revenue &

Customs (HMRC) will pay in another £25. You’ll get this

tax relief up to the higher of £3,600 gross (including tax

relief) or 100% of your earnings. If you earn above the

basic rate you will be able to claim back the extra tax you

pay through your tax return.

Annual Allowance

The Annual Allowance is a limit to the total amount of

payments that can be paid to defined contribution pension

schemes and the total amount of benefits that you can

build up in defined benefit pension schemes each year, for

tax relief purposes.

Money Purchase Annual Allowance

Taking money out of your pension will sometimes lower

the amount you can pay into all the pensions you may

have while still benefitting from tax relief. This limit is

called the Money Purchase Annual Allowance (MPAA).

Your pension scheme administrator or provider will have

told you if you are subject to the MPAA at the time they

started to pay you.

Lump Sum Allowances

From 6 April 2024 the lifetime allowance was replaced by

two new allowances.

The Lump Sum Allowance (LSA)

This is a limit on the amount of tax free lump sums that

can be taken from pension schemes.

Lump Sum and Death Benefit Allowance (LSDBA)

This is a limit on the amount of lump sum death benefits

and serious ill health lump sums that can be paid

without tax.

Where the amount exceeds either of these allowances,

income tax may be payable on the excess.

Capital Gains

You don’t pay capital gains tax on your pension funds.

Income tax

Any money taken out, excluding any tax-free cash, may

be subject to income tax. Lump sum benefits payable

on death are not normally subject to income tax unless

they are over the available lump sum and death benefit

allowance, paid out more than 2 years after notification of

death or where death occurred after age 75.

Inheritance tax

Lump sum benefits are not normally subject to

Inheritance tax.

How will I know how my Flexible

Retirement Plan is doing?

We’ll send you a yearly statement, which shows how your

plan is doing. If you’ve chosen either SIPP option, we send

you a separate statement about the SIF.

Keep track of your plan online, at a time that

suits you

With your Online Service you can check the value of your

plan, contact us securely, change personal details and

view your documents. If you’re not registered, it’s easy and

only takes five minutes. You’ll need your policy number,

postcode and date of birth. Go to pru.co.uk/registeronline

to find out more.

Alternatively, you can email us at contact.us@prudential.

co.uk. We want to make sure your information is kept

secure. So please don’t send us any personal details using

email. Or you can phone our Customer Service Centre on

0345 640 3000 and a member of our team will give you

an up-to-date valuation.

What happens to the Flexible Retirement

Plan if I die?

Personal Pension – we, as Trustees, have discretion on

the distribution of death benefits. If you’ve completed a

nomination we’ll take this into account, but it’s not binding

on us.

We can offer to pay death benefits as a lump sum to

anyone we choose using our discretion. However, if

you die leaving any dependant(s), or you nominate any

individual, or charity, we can only offer beneficiary income

options (annuity or drawdown) to any dependant(s) and/or

nominated individuals.

Taxation can be complex but generally, payments will be

tax free if:

• Under 75 at the date of death

• Made/designated within 2 years of us being informed of

your death

• There was sufficient Lump Sum and Lump Sum Death

Benefit Allowances available

Tax rules can change and the impact of

taxation (and any tax relief) depends on your

circumstances. Before you make a decision you

should speak to your financial adviser. They can

help you understand the tax rules and how they

might affect you.

If you’ve invested in the SIF, you should talk to

your financial adviser about how tax affects

your investment.

For more information visit pru.co.uk/tax or the

HMRC website at hmrc.gov.uk

For further details please see the section

‘What about tax?’.

Drawdown – if any individual nominated by you to receive

any death benefits is a restricted dependant, then that

nomination will be binding on us.

A restricted dependant is:

• the member’s spouse, civil partner, and/or children under

the age of 23; or

• any person who was, in our opinion, financially

dependent on the member at the date of his or her

death; or

• a person who was, in our opinion, dependent on the

member at the date of his or her death due to physical or

mental impairment.

• Financial interdependence does not qualify.

We can offer to pay death benefits as a lump sum, or

income (annuity or drawdown) to a restricted dependant.

However, if there’s no nomination, or a nomination for

someone other than a restricted dependant, we have

discretion on the distribution of death benefits.

If you die leaving any dependant(s), or you nominate any

individual, or charity, we can only offer beneficiary income

options (annuity or drawdown) to any dependant(s) and/or

nominated individuals.

Taxation can be complex but generally, payments will be

tax free if:

• Under 75 at the date of death

• Made within 2 years of us being informed of your death

(lump sums only)

Please note: any money in the FRP Holding Account

at the time of your death, will be treated as if you’d

invested it in the personal pension option rather than the

drawdown option.

It’s important that your nomination is kept up to

date. Please contact us if you need more details on

the distribution of death benefits under our Flexible

Retirement Plan.

What if the Flexible Retirement Plan isn’t

right for me?

You can change your mind within 30 days from when you

get your Plan documents. This may not apply to some

asset types within the Self Invested Fund that cannot be

readily sold.

If you decide, for any reason, within this period that you

don’t want the FRP, we’ll give you your money back. If you

decide to cancel your Plan, your refund will not include

any Adviser Charges that have been paid to your Adviser.

What you will get back will only relate to the amount

remaining invested in your Plan after deduction of any

Adviser Charges.

If you start the Plan with a single payment and cancel

within 30 days, you may get back less than you paid in if

the value has fallen as a result of investment performance,

except where you’ve invested in our With-Profits Fund or

PruFund Range of Funds.

If you do not exercise your right to cancel within the

30day statutory cancellation period, the contract will

become binding and we will not return any money to

you until you are ready to take your benefits.

If you wish to exercise your right to cancel, you should

complete and return the Cancellation Notice you will

receive or write to us at:

Prudential Customer Services

Prudential

Lancing

BN15 8GB

Other information

Client category

We classify you as a ‘retail client’ under Financial

Conduct Authority (FCA) rules. This means you’ll

receive the highest level of protection for complaints

and compensation and receive information in a

straightforward way.

Compensation

The products Prudential Assurance Company Limited

(PACL) offer are covered by the Financial Services

Compensation Scheme (FSCS). If we get into financial

difficulties, you may be able to make a claim. The FSCS

is an independent body set up by Government to provide

compensation for people where their authorised financial

services provider gets into financial difficulties and

becomes unable, or unlikely to be able, to pay claims

against it. This circumstance is referred to as being

‘in default’.

Losses, which may result from poor investment

performance, are not covered by the FSCS.

Where does FSCS protection apply?

There is full FSCS coverage if PACL is ‘in default’.

• Your product is protected up to 100% of the value of

your claim.

• Any investments you choose to hold in your product will

be included in the value of your claim in the event that

PACL is declared ‘in default’.

• If you hold the Prudential With-Profits fund or PruFund

Funds in your product, they are all protected 100% in

the event of the default of PACL.

Other investment options are not protected by

the FSCS.

• All the other Prudential funds we offer (you’ll know

these if the name starts ‘Prudential’), apart from those

mentioned above, are unit-linked and invest with non-

PACL fund managers, so FSCS cover does not apply if

that fund manager were to be ‘in default’.

• And the FRP Holding Account, and any investment in

the Self-lnvested Fund, are also not protected.

You can find out more information on the FSCS in your

Technical Guides, at pru.co.uk/fscs, or you can call us.

Information is also available from the Financial Services

Compensation Scheme.

Visit their website: fscs.org.uk

Or write to:

The Financial Services Compensation Scheme,

PO Box 300,

Mitcheldean

GL17 1DY

Or call the FSCS: Telephone: 0800 678 1100

Where FSCS coverage does not apply, then other

factors can come in

As explained in the ‘Where does FSCS protection apply?’

section, the FSCS doesn’t cover every situation. For

example unit-linked funds that Invest in the funds of non-

PACL fund managers (often called ‘mirror’ funds).

But, where FSCS protection does not apply, there are

other factors that could help if the worst happened

and a provider was ‘in default’. For example, the use of

custodians or depositories to provide protection for fund

assets, where there is separate legal ownership of assets

and legal entities that aren’t liable for any losses of a fund

manager. ln so doing, the intention is that the underlying

fund will not be liable for any losses the underlying fund

management company incurs.

PACL would aim to recover any money invested in an

underlying fund where the fund manager has been

declared ‘in default’, but PACL would not be liable for

any loss incurred from the default of the non-PACL

fund manager.

Financial Strength

Prudential meets regulatory standards for meeting its

financial obligations. You can read our solvency and

financial conditions reports at pru.co.uk/about_us, or if

you contact us using the details on the last page, we can

post some information to you.

Terms and conditions

This Key Features Document gives a summary of your

plan. Full details are set out in the Technical Guides which

are available on request using our contact information on

the last page. We will also send them to you when your

plan starts.

Conflict of Interest

We want to make sure that we uphold our reputation for

conducting business with integrity. If we become aware

that our interests may conflict with yours, we will take all

reasonable steps to manage it in an appropriate manner.

We have drawn up a policy to deal with any conflicts of

interest. If you would like to know the full details, please

Law

The law of England and Wales applies to your contract.

Our regulators

We are authorised by the Prudential Regulation Authority

and regulated by the Financial Conduct Authority and the

Prudential Regulation Authority. Prudential Assurance

Company Limited is entered on the Financial Conduct

Authority (FCA) Register, FCA Reference Number

139793. The FCA Register is a public record of all the

organisations that the FCA regulates.

You can contact the FCA at:

The Financial Conduct Authority

12 Endeavour Square

London

E20 1JN

Email: consumer.[email protected]g.uk

Prudential Regulation Authority details:

The Prudential Regulation Authority

Bank of England

Threadneedle St

London

EC2R 8AH

Email: enquiries@bankofengland.co.uk

Communicating with you

Our documents and terms and conditions, as well as all

other communications, will be in English.

How to make a complaint

If you have a complaint, please get in touch with us and

we will do everything we can to resolve it. You can also

ask us for details of our complaints handling process. Our

contact details are in the ‘Get in touch’ section at the back

of this document.

If you’re not satisfied with our response, you can take

your complaint to the Financial Ombudsman Service who

help settle individual disputes between consumers and

businesses providing financial services:

Financial Ombudsman Service

Exchange Tower

London

E14 9SR

Telephone: 0800 023 4567 or 0300 123 9123

Or visit the website: financial-ombudsman.org.uk

Help is also available from The Pensions Ombudsman

who deals with complaints and disputes about the

administration and management of occupational and

personal pension schemes.

The Pensions Ombudsman

10 South Colonnade

Canary Wharf

London

E14 4PU

Telephone: 0800 917 4487

Email: [email protected]

Website: pensions-ombudsman.org.uk

You can also submit a complaint form online:

pensions-ombudsman.org.uk/making-complaint

These services are free and using them won’t affect your

legal rights.

If you want to contact us before you buy this plan, you can write, email or phone:

With your Online Service you can check the value of your plan, contact us securely, change personal details

and view your documents. If you’re not registered, it’s easy and only takes five minutes. You’ll need your policy

number, postcode and date of birth. Go to pru.co.uk/registeronline to find out more.

Write to: Prudential Lancing BN15 8GB UK

Phone: 0345 640 3000 Monday to Friday 8am to 6pm. We might record your call for training and quality

purposes. To find out more about how we use your personal data please visit pru.co.uk/mydata

If you are a deaf customer, who is also a British Sign Language (BSL) user, you can contact us using a Video

Relay service. The service, provided by SignVideo, connects customers to fully qualified, registered NRCPD

interpreters who will relay your conversation with a member of our customer service team.

pru.co.uk/contact-us/signvideo

There is no cost for using this service to call Prudential and we’re available to help you Monday to Friday,

8am to 6pm.

Keep in touch

It’s important that we keep in touch so, if you change your address or any of your contact details, please let us know.

Get in touch

‘Prudential’ is a trading name of The Prudential Assurance Company Limited which is registered in England and Wales. Registered Office at

10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial

Conduct Authority and the Prudential Regulation Authority.

pru.co.uk

PPPK6139 02/2024_WEB