Personal Investment Plan

Helping you find out more about your Personal Investment Plan

From time to time a helping hand to confirm the details of your investments can be useful. So we hope you’ll find the following information about your Personal Investment Plan (or PIP for short) helpful. Please use the buttons below to find out more.

Who is your PIP held with?

Halifax

Halifax

Halifax PIP

What is the Personal Investment Plan (PIP)?

Your PIP is a life assurance investment plan that holds units in the fund(s) you have chosen to invest in. Its aim is to help the value of your money grow over time, however the value of your PIP could also fall and you may not receive back the amount invested.

The purpose of this site is to provide you with a summary of your PIP and the important points you need to know. For full details of the features and benefits of your PIP please refer to the Key Features document.

How does a unit linked investment work?

The ‘units’ of your PIP are like shares in a fund. The price of each unit depends on the value of the investments held by the fund and the number of units in it.

The number of units held in your PIP depends on the amount you have invested, charges made and the unit price.

The value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.

What fund choices are available?

Your PIP has a choice of investment funds, offering a range of different levels of risk. The funds into which you can make additional payments or switches depends on those in which you currently invest. You can switch between available investment funds, currently free of charge.

Does my PIP have a fixed investment term?

There is no fixed term to your PIP, so you can keep it for as long as you want, but you should be prepared to invest for at least five to ten years.

How much can I invest?

There is no limit to the amount you can invest in your PIP.

When making a top up, the current minimum amount you can add to your plan is £250.

Please remember the value of your plan can go up and down and you may get back less than you invested.

What might I get back?

The amount you get back from your PIP isn’t guaranteed and will depend on:

  • the amount invested
  • the length of time it's invested
  • the investment performance of the fund(s)
  • product charges
  • whether you have already cashed in some of your plan or taken any regular withdrawals
  • any loyalty bonus added to your plan.

You may get back less than you invested.

Remember that the effect of inflation will reduce the future buying power of what you get back.

Can I make withdrawals?

You can choose to take regular (every month, every half-year or every year) or one-off withdrawals.

As the withdrawal options available for your PIP can impact on the tax you may need to pay, if you are unsure about the tax implications of making a withdrawal from your PIP we suggest that you speak to a tax adviser.

One-off withdrawals must be at least £100.

You’ll need to leave at least £100 in your plan after the withdrawal (£1,000 for plans invested in the Managed Income Fund) otherwise we’ll close it, cash in the remaining units and pay you the proceeds.

How do I find out how my PIP is performing?

Every year we send you a statement showing the current number of units in your PIP.

You can get details of the unit prices by visiting our funds page.

You can also ask for the value of your PIP at any time by giving us a call or writing to us.

What happens to my Personal Investment Plan if I die?

If your life is the only life covered, we’ll pay out the benefits of the plan to your estate. If the plan is written under trust, the payment will be made to the trustees.

If two lives are covered, payment will be made in line with how the plan was originally set up, i.e. on the first or second death.

The amount we pay will be the value of your plan at the next valuation point after our administration unit receives official notification of death; plus any loyalty bonus due up to the day before we receive notification.

When calculating payouts we will take into account any relevant Yearly Management Charge (YMC) reduction in relation to additional payments made on or after 1st October 2012.

For plans where the original investment was made on or after 25th January 2010

  • If you die (or where there are two lives covered, the first or last person dies, depending on how the plan was set up) as a direct result of an accident (as defined in the plan conditions), we will increase the death benefit we pay to 110% of the value of your plan plus any loyalty bonus due.
  • Your plan conditions will give you full details of the increased death benefit on accidental death, including the exclusions that apply.

    If you’re the owner of the plan but not the person whose life is covered, and you die, the plan will continue and ownership will pass to the person entitled to it.

Is your PIP fund still right for you?

You should review the fund in which your PIP invests from time to time to make sure this is still appropriate for you.

You are able to switch between available funds, currently free of charge.

If you’d like up-to-date information about how your funds are doing, please visit our funds page.

You can find out more information about the funds themselves in our Investor's Guide or by referring to the Key Features document.

What are my investment options?

Just to remind you, investment options for your Halifax PIP depend on the funds in which you are currently invested.

If you are invested in any of the four funds below (shown in order of investment approach), you can only make additional investments and switch between these funds:

For more information on these funds please refer to pages 12-17 of the Key Features document

If you are invested in any of the twenty funds below you can only make additional investments and switch between these funds:

For more information on these funds please refer to pages 18-28 of the Key Features document

If you are invested in any of the ten independently managed funds below you can make additional investments and switch between these funds and the funds listed earlier:

For more information on these funds please refer to pages 28-32 of the Key Features document.

Investment approaches at a glance

While there are a number of ways to evaluate risk, the Cautious Growth Fund, Balanced Growth Fund, Progressive Growth Fund and Adventurous Growth Fund have been categorised using the investment approaches shown below.

Please note that we do not currently offer funds for the 'Secure' or 'Specialist' approaches within the PIP and the other thirty funds listed above have not been categorised using an investment approach.

The funds have exposure to different types of investments as described in the fund aims. These investments can include bonds (also known as fixed interest securities), equities, property, commodities and other alternative investments depending on the fund’s investment objectives.

We review the investment approach definitions regularly, so these may change over time.

We also may change what the funds are invested in and the selection of funds that we make available.

Increasing Risk >
Secure Cautious Balanced Progressive Adventurous Specialist
These investments provide safety to the amount invested and can be expected to offer relatively low growth over the medium to long term. They cannot fall in actual value, but can fall in ‘real’ value due to the effects of inflation.

(Not offered within PIP).
These investments are expected to have a relatively modest risk to the capital value and/ or income. They have the potential to provide income, and/or, over the medium to long-term, relatively modest capital growth. The capital value may fluctuate, although some products may offer an element of capital protection. These investments carry a risk of loss to capital value but have the potential for capital growth and/ or income over the medium to long term. Typically they do not have any guarantees and will fluctuate in capital value. These investments are expected to have a relatively significant risk of loss to capital value, but with the potential of relatively more capital growth over the medium to long term. They do not offer any guarantees and will fluctuate in capital value. These investments carry a relatively much higher risk of capital loss but with the potential for relatively higher capital growth over the medium to long term. They may be subject to a considerable level of fluctuation in capital value. They do not offer any guarantees. These investments carry a very high risk of capital loss, but with the potential for a higher return over the long term. They are very volatile and are only suitable for clients who can afford to, and are prepared to, risk the entire capital value. They do not offer any guarantees.

(Not offered within PIP).
Increasing Risk >
Investment periods
We categorise investment periods as follows:
Short-term: Up to 5 years
Medium-term: Between 5 and 10 years
Long-term: Over 10 years

What can affect the value of my PIP?

The flexibility of your PIP is one of its key benefits; you can enjoy the flexibility of making additional payments, taking tax-efficient withdrawals, and switching funds to suit your needs. These elements make it a product which should continue to meet your needs over many years.

However it’s important to consider how these flexible options can also affect the value of your PIP over the long term.

i) Withdrawals

You can take tax efficient withdrawals of up to 5% each year. However if your withdrawals are greater than the amount your investment has grown each year the value of your PIP will decrease over time. Find out more on how to make a withdrawal.

ii) Charges

All providers charge for managing investment products, and it’s important to check that the charges are not greater than your investment growth each year otherwise the value of your PIP will decrease over time. Find out more on the charges that can apply to a PIP.

iii) Fund selection

Your fund choice, the fund charges and its performance will affect the value of your PIP. It’s important to review your funds regularly to ensure that it is performing in line with your expectation. Find out more on the investment options available for your PIP.

iv) Additional payments

Any additional payments into your PIP will increase its value when they are made. Please remember the value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.

Adding to my PIP

Making an additional payment into your PIP is simple. You can either call us on 0345 030 6244 between 8am to 6pm Monday to Friday and 9am to 12.30pm on Saturday (please have your plan number available) or complete and return the Additional Investments form.

There is no maximum to the amount you can invest in your PIP.

Things to think about:

The investment you made into your PIP should be viewed over the medium to long term, at least a five to ten year period, to help meet your financial objectives. Taking this approach aims to help smooth out the ups and downs of the stock market.

Before making the decision to withdraw funds from your PIP it’s important to consider:

  • you’ll lose any future investment growth on anything you take out of your plan.
  • you may have some income tax to pay when making a withdrawal from your PIP.
  • if you don’t need all the money now, you could take what you need and leave the rest invested, or take a regular withdrawal from your plan if you need it.
  • you may be eligible for a loyalty bonus in the future, which you would lose or which would reduce if you take withdrawals from your plan.
  • if you hold any money in a savings account, you should consider if this might be a more appropriate source of funds than cashing in some or all of your PIP.

To help you better understand the key points involved, we recommend that you take a few minutes to read through our PIP Guide to Making Withdrawals

How do I make a withdrawal from my plan?

There are five ways to make a withdrawal from your PIP:

  • Option 1 – Withdraw a specific amount of money using a combination of options 2 & 3
  • Option 2 – Take a lump sum or regular withdrawals by partly cashing in an equal amount from all segments
  • Option 3 – Cash in whole segments
  • Option 4 – Cash in a specific number of whole segments and then partly cash in an equal amount from all the remaining segments
  • Option 5 – Withdraw all of your investment and close your plan

For more information please refer to our PIP Guide to Making Withdrawals

You can take regular or one-off withdrawals at any time but these will reduce the value of your PIP, and will reduce the value of any loyalty bonus that may be added to your plan.

Regular withdrawals can be made every month, every half-year or every year, paid by direct credit to your bank account.

To make a withdrawal please call us on 0345 030 6244. Our lines are open between 8am to 6pm Monday to Friday and 9am to 1pm on Saturday.

Alternatively please download a Withdrawal form and return it to us at:
Scottish Widows
PO Box 30000
15 Dalkeith Road
Edinburgh EH16 9AT

Once we have all the information needed, your request will be processed within five working days. Payments are made through BACS (Banks Automated Clearing System) and usually take 3-4 working days to be credited to your account.

Is there a minimum I can withdraw?

The minimum amounts you can choose for regular withdrawals are £50 a month, £250 a half year or £500 a year.

One-off withdrawals must be at least £100.

You’ll need to leave at least £100 in your plan after the withdrawal (£1,000 for plans invested in the Managed Income Fund) otherwise we will close it, cashing in the remaining units and paying you the proceeds.

You can cash in your whole plan at any time.

Will making a withdrawal affect my loyalty bonus or Yearly Management Charge?

If you cash in your whole plan before a loyalty bonus is due, you won’t receive the loyalty bonus.

If you cash in your plan or individual plan segments, any relevant Yearly Management Charge (YMC) reduction will be taken into account in relation to additional payments made on or after 1st October 2012 when calculating pay-outs.

We’ll process your request within five working days and pay the money by direct credit to your bank account, which can take up to four working days to arrive.

The PIP loyalty bonus

Depending on how long you remain invested in your PIP you may be eligible to receive a loyalty bonus. This is created by adding units to your plan.

Each loyalty bonus is calculated based on a percentage of the average value of the plan over the loyalty bonus period as the following two tables show. Please note that no loyalty bonus is added for investments in the Managed Income Fund.

Loyalty bonuses are paid by adding units to the plan, providing it’s in force when the bonus is due, and are calculated as follows:

For plans taken out before 30th November 2007

Loyalty bonus due date Percentage of average plan value used to calculate the bonus units added
25th November 2020 1% of the average plan value between 25th November 2015 and 24th November 2020

For plans taken out between 30th November 2007 and 27th June 2010

Loyalty bonus due date Percentage of average plan value used to calculate the bonus units added
5th plan anniversary 0.5% of the average plan value up to the 5th plan anniversary
10th plan anniversary 0.75% of the average plan value between the 5th and 10th plan anniversaries
15th plan anniversary 1% of the average plan value between the 10th and 15th plan anniversaries

PIP charges

We charge for managing and investing the plan and our charges are detailed below. For more details please refer to the Key Features document.

Information for the Cautious Growth Fund, Balanced Growth Fund, Progressive Growth Fund & Adventurous Growth Fund only:

  • A Yearly Management Charge (YMC), which is a percentage of the fund value, is deducted from each fund and is reflected in the unit prices of the fund each day. The current YMC is 1.35%.
  • You will receive a discount on the YMC of 0.5% for any top ups made on or after 1st October 2012.
  • If you cash in your plan or individual plan segments, any relevant YMC reduction will be taken into account in relation to additional payments made on or after 1st October 2012 when calculating payouts.
  • The YMC for each fund does not include the additional expenses for operating the fund.
  • These additional expenses are added to the YMC to form a Total Yearly Fund Charge (TYFC)

The table below shows the levels of these other expenses. These figures are estimates:

Fund Name Yearly Management Charge Estimated level of other expenses Current estimated total yearly fund charge
Cautious Growth 1.35% 0.09% 1.44%
Balanced Growth 1.35% 0.15% 1.50%
Progressive Growth 1.35% 0.12% 1.47%
Adventurous Growth 1.35% 0.17% 1.52%

Based on fund information as at July 2017. The YMC reduction for top ups made on or after 1st October 2012 is not included in the above table.

Information for the funds listed below only (shown in alphabetical order):

A-H I J-Z
  • Cautious Managed Fund
  • Ethical Fund
  • European Fund
  • Far Eastern Fund
  • Fund of Investment Trusts
  • Gilt & Fixed Interest Fund
  • High Income Fund
  • Independently Managed European Fund
  • Independently Managed Far Eastern Fund
  • Independently Managed Gilt & Fixed Interest Fund
  • Independently Managed International Growth Fund
  • Independently Managed North American Fund
  • Independently Managed Opportunities Fund
  • Independently Managed Smaller Companies Fund
  • Independently Managed UK Equity Income Fund
  • Independently Managed UK Growth Fund
  • Independently Managed UK Index Fund
  • Index-Linked Gilt Fund
  • International Growth Fund
  • Japanese Fund
  • Managed Fund
  • Managed Income Fund
  • Money Fund
  • North American Fund
  • Pelican Fund
  • Property Fund
  • Smaller Companies Fund
  • Special Situations Fund
  • UK FTSE 100 Index Tracking Fund
  • UK FTSE All-Share Index Tracking Fund

A Yearly Management Charge (YMC) of 1.4% a year of the fund value applies (except for the funds listed in the table below).

If you have made an additional payment on or after 1st October 2012, you may receive a reduction to the YMC deducted in relation to the additional payment(s) of up to 0.50%. We will apply this reduction by adding extra units to the plan at the end of each calendar year. We will confirm the value of this reduction in your annual statement.

Funds Yearly Management Charge
UK FTSE 100 Index Tracking Fund, UK FTSE All-Share Index Tracking Fund 1.00%
Managed Income Fund 1.25%
European Fund, Far Eastern Fund, High Income Fund, International Growth Fund, Japanese Fund, North American Fund, Pelican Fund 1.35%

However, the YMC for each of the independently managed funds does not include the additional expenses for operating these funds.

These additional expenses are added to the YMC to form a total yearly fund charge.

The table below shows the current additional management charge:

Halifax Fund name Additional management charge
Independently Managed Gilt & Fixed Interest Fund
Independently Managed North American Fund
Independently Managed Smaller Companies Fund
Independently Managed UK Growth Fund
0.30%
Independently Managed European Fund
Independently Managed Far Eastern Fund
Independently Managed International Growth Fund
Independently Managed Opportunities Fund
Independently Managed UK Equity Income Fund
Independently Managed UK Index Fund
0.35%

We can change most of the charges we make. We may do this if our costs turn out to be unexpectedly high compared to our charges. Charges may increase if:

  • a tax rule or law change increases our costs or decreases our income
  • our costs in respect of the administration of the product increase.

We will give you 3 months’ notice if we increase the charges.

Reduction in yearly management charges

If you’ve paid a total of £30,000 or more into your plan we will currently reduce the YMC as detailed below. We will do this by adding extra units to your plan at the end of each calendar year to reflect the reduction in the YMC.

Any reduction in the YMC is determined by the total amount you’ve paid, including your original investment as at 31st December. We will add any extra units to your plan on this date, unless you have cashed in all of your plan, in which case no reduction in YMC will apply.

Total paid into plan to date (Less any withdrawal) Reduction in yearly management charge for plans taken out on or before 7th September 2008 Reduction in yearly management charge for plans taken out after 7th September 2008
Up to £29,999 0.0% 0.0%
£30,000 to £124,999 0.25% 0.15%
£125,000 to £499,999 0.5% 0.4%
£500,000 and over 0.75% 0.06%

Please note that movements in the value of your plan are not taken into account when calculating the level of the reduction in yearly management charge.

Key points to consider

The proceeds of your plan are payable free of any personal liability to income tax at basic rate, or to capital gains tax.

However, there may be an income tax charge at the difference between the basic rate and higher or additional rate of income tax if:

  • you’re a higher or additional rate tax payer when the gain arises.
  • the chargeable gain results in you becoming a higher or additional rate tax payer.

Depending on how many withdrawals you’ve made before, and how much they were, you can take up to 5% each year of your initial investment without any immediate liability to tax. The 5% amount is known as a tax-deferred allowance.

The maximum amount you can take over the lifetime of the plan using the tax-deferred allowance is the total amount you have paid into the investment. For instance, with an initial investment of £30,000 you could withdraw £1,500 each plan year over 20 years.

The value of any tax benefits of your plan depend on your individual circumstances. Your circumstances and tax rules may change in the future.

For more information please refer to the Key Features Document and Guide to Making Withdrawals

If you are unsure about the tax implications of making a withdrawal from your PIP we suggest that you speak to a tax adviser.

Contact us by phone or in writing

To find out the value of your plan, make additional investments, fund switches, withdrawals or for anything else you would like to talk to us about your PIP, you can call us on 0345 030 6244.

Our lines are open from 8am to 6pm Monday to Friday and from 9am to 1pm on Saturday. Your call may be recorded for quality and training purposes.

Alternatively you can contact us in writing at:
Scottish Widows
PO Box 30000
15 Dalkeith Road
Edinburgh EH16 9AT

To allow us to deal promptly with your request, please ensure you include:

  • your account, plan or policy number
  • your full name
  • your address
  • how you would like us to reply and your contact details (e.g. telephone number or email address)
  • your signature, which provides with us with your consent to complete your instruction.

Once we have received your letter, we aim to respond to your request within five working days. Please note in order to process some requests, we may need to get in touch with you for additional information. Therefore to avoid any delays, please can you include a daytime contact number or email.

Scottish Widows

Scottish Widows

Scottish Widows PIP

What is the Personal Investment Plan (PIP)?

Your PIP is a life assurance investment plan that holds units in the fund(s) you have chosen to invest in. Its aim is to help the value of your money grow over time, however the value of your PIP could also fall and you may not receive back the amount invested.

The purpose of this site is to provide you with a summary of your PIP and the important points you need to know. For full details of the features and benefits of your PIP please refer to the Key Features document.

How does a unit linked investment work?

The ‘units’ of your PIP are like shares in a fund. The price of each unit depends on the value of the investments held by the fund and the number of units in it.

The number of units held in your PIP depends on the amount you have invested, charges made and the unit price.

The value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.

What fund choices are available?

PIP has a choice of four investment funds (offering a range of different levels of risk) and you can switch your investment between these funds, currently free of charge.

Does my PIP have a fixed investment term?

There is no fixed term to your PIP, so you can keep it for as long as you want, but you should be prepared to invest for at least five to ten years.

How much can I invest?

There is no limit to the amount you can invest in your PIP.

When making a top up, the current minimum amount you can add to your plan is £250.

Please remember the value of your plan can go up and down and you may get back less than you invested.

What might I get back?

The amount you get back from your PIP isn’t guaranteed and will depend on:

  • the amount invested
  • the length of time it's invested
  • the investment performance of the fund(s)
  • product charges
  • whether you have already cashed in some of your plan or taken any regular withdrawals
  • any loyalty bonus added to your plan.

You may get back less than you invested.

Remember that the effect of inflation will reduce the future buying power of what you get back.

Can I make withdrawals?

You can choose to take regular withdrawals, cash in all or part of your plan, or both.

As the withdrawal options available for your PIP can impact on the tax you may need to pay, if you are unsure about the tax implications of making a withdrawal from your PIP we suggest that you speak to a tax adviser.

The minimum amounts you can choose for regular withdrawals are £50 a month, £250 a half year or £500 a year and the maximum regular withdrawals you can take in a plan year are 7.5% of the total amount invested in your plan.

You’ll need to leave at least £500 in your plan after cashing in some of it or taking regular withdrawals; otherwise we’ll close it, cash in the remaining units and pay you the proceeds.

How do I find out how my PIP is performing?

Every year we send you a statement showing the current number of units in your PIP.

You can get details of the unit prices by visiting our funds page.

You can also ask for the value of your PIP at any time by giving us a call or writing to us.

What happens to my PIP if I die?

If your life is the only life covered, we’ll pay out the benefits of the plan to your estate. If the plan is written under trust, the payment will be made to the trustees.

If two lives are covered, we’ll pay out the benefits of your plan when the last life covered dies.

For both single and joint plans:

  • If death is not due to an accident then the amount we will pay is 100% of the plan value at the next valuation point after our administration office receives official notification of death
  • If death occurs as a direct result of an accident (as defined in the plan conditions booklet that was issued when you originally took out your plan) then we will pay 110% of the plan value at the next valuation point after our administration office receives official notification of death.
In both circumstances the plan value as a result of death will include any accrued loyalty bonus. Any reduction in Yearly Management Charge (YMC) will be applied.

Any loyalty bonus that has accrued will be calculated from the last loyalty bonus due date up to and including the day before the date our administration office receives written notification of death.

Is your PIP fund still right for you?

You should review the fund in which your PIP invests from time to time to make sure this is still appropriate for you.

You are able to switch between funds, currently free of charge.

If you’d like up-to-date information about how your funds are doing, please visit our funds page.

You can find out more information about the funds by referring to the Key Features document.

What are my investment options?

Just to remind you, the Scottish Widows PIP offers the choice of four investment options:

Investment approaches at a glance

While there are a number of ways to evaluate risk, the four funds your PIP is able to invest in have been categorised using the investment approaches shown below. Please note that we do not currently offer funds for the 'Secure' or 'Specialist' approaches within the PIP.

The funds have exposure to different types of investments as described in the fund aims. These investments can include bonds (also known as fixed interest securities), equities, property, commodities and other alternative investments depending on the fund’s investment objectives.

We review the investment approach definitions regularly, so these may change over time.

We also may change what the funds are invested in and the selection of funds that we make available.

Increasing Risk >
Secure Cautious Balanced Progressive Adventurous Specialist
These investments provide safety to the amount invested and can be expected to offer relatively low growth over the medium to long term. They cannot fall in actual value, but can fall in ‘real’ value due to the effects of inflation.

(Not offered within PIP).
These investments are expected to have a relatively modest risk to the capital value and/ or income. They have the potential to provide income, and/or, over the medium to long-term, relatively modest capital growth. The capital value may fluctuate, although some products may offer an element of capital protection. These investments carry a risk of loss to capital value but have the potential for capital growth and/ or income over the medium to long term. Typically they do not have any guarantees and will fluctuate in capital value. These investments are expected to have a relatively significant risk of loss to capital value, but with the potential of relatively more capital growth over the medium to long term. They do not offer any guarantees and will fluctuate in capital value. These investments carry a relatively much higher risk of capital loss but with the potential for relatively higher capital growth over the medium to long term. They may be subject to a considerable level of fluctuation in capital value. They do not offer any guarantees. These investments carry a very high risk of capital loss, but with the potential for a higher return over the long term. They are very volatile and are only suitable for clients who can afford to, and are prepared to, risk the entire capital value. They do not offer any guarantees.

(Not offered within PIP).
Increasing Risk >
Investment periods
We categorise investment periods as follows:
Short-term: Up to 5 years
Medium-term: Between 5 and 10 years
Long-term: Over 10 years

What can affect the value of my PIP?

The flexibility of your PIP is one of its key benefits; you can enjoy the flexibility of making additional payments, taking tax-efficient withdrawals, and switching funds to suit your needs. These elements make it a product which should continue to meet your needs over many years.

However it’s important to consider how these flexible options can also affect the value of your PIP over the long term.

i) Withdrawals

You can take tax efficient withdrawals of up to 5% each year. However if your withdrawals are greater than the amount your investment has grown each year the value of your PIP will decrease over time. Find out more on how to make a withdrawal.

ii) Charges

All providers charge for managing investment products, and it’s important to check that the charges are not greater than your investment growth each year otherwise the value of your PIP will decrease over time. Find out more on the charges that can apply to a PIP.

iii) Fund selection

Your fund choice, the fund charges and its performance will affect the value of your PIP. It’s important to review your funds regularly to ensure that it is performing in line with your expectation. Find out more on the investment options available for your PIP.

iv) Additional payments

Any additional payments into your PIP will increase its value when they are made. Please remember the value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.

Adding to my PIP

Making an additional payment into your PIP is simple. You can either call us on 0800 141 418 between 8am to 6pm Monday to Friday and 9am to 12.30pm on Saturday (please have your plan number available) or complete and return the Additional Investments form.

There is no maximum to the amount you can invest in your PIP.

Things to think about:

The investment you made into your PIP should be viewed over the medium to long term, at least a five to ten year period, to help meet your financial objectives. Taking this approach aims to help smooth out the ups and downs of the stock market.

Before making the decision to withdraw funds from your PIP it’s important to consider:

  • you’ll lose any future investment growth on anything you take out of your plan.
  • you may have some income tax to pay when making a withdrawal from your PIP.
  • if you don’t need all the money now, you could take what you need and leave the rest invested, or take a regular withdrawal from your plan if you need it.
  • you may be eligible for a loyalty bonus in the future, which you would lose or which would reduce if you take withdrawals from your plan.
  • if you hold any money in a savings account, you should consider if this might be a more appropriate source of funds than cashing in some or all of your PIP.

To help you better understand the key points involved, we recommend that you take a few minutes to read through our PIP Guide to Making Withdrawals

How do I make a withdrawal from my plan?

There are four ways to make a withdrawal from your PIP:

  • Option 1 – Withdraw a specific amount of money using a combination of options 2 & 3
  • Option 2 – Take a lump sum or regular withdrawals by withdrawing an equal amount from all segments
  • Option 3 – Cash in whole segments
  • Option 4 – Withdraw all of your investment and close your plan

For more information please refer to our PIP Guide to Making Withdrawals

You can take regular or one-off withdrawals at any time but these will reduce the value of your PIP, and will reduce the value of any loyalty bonus that may be added to your plan.

Regular withdrawals can be made every month, every half-year or every year, paid by direct credit to your bank account.

To make a withdrawal please call us on 0800 141 418. Our lines are open between 8am to 6pm Monday to Friday and 9am to 12.30pm on Saturday.

Alternatively please download a Partial Withdrawal form or Full Withdrawal form and return it to us at:
Scottish Widows
PO Box 28116
15 Dalkeith Road
Edinburgh EH16 5BU

Once we have all the information needed, your request will be processed within five working days. Payments are made through BACS (Banks Automated Clearing System) and usually take 3-4 working days to be credited to your account.

Is there a minimum I can withdraw?

The minimum amounts you can choose for regular withdrawals are £50 a month, £250 a half year or £500 a year.

One-off withdrawals must be at least £100.

You’ll need to leave at least £500 in your plan after the withdrawal, otherwise we will close it, cashing in the remaining units and paying you the proceeds.

You can cash in your whole plan at any time.

Will making a withdrawal affect my loyalty bonus or Yearly Management Charge?

If you cash in your whole plan before a loyalty bonus is due, you won’t receive the loyalty bonus.

If you cash in your plan or individual plan segments, any relevant Yearly Management Charge (YMC) reduction will be taken into account in relation to additional payments made on or after 1st October 2012 when calculating pay-outs.

We’ll process your request within five working days and pay the money by direct credit to your bank account, which can take up to four working days to arrive.

The PIP loyalty bonus

Depending on how long you remain invested in your PIP you may be eligible to receive a loyalty bonus.

Each loyalty bonus depends on the average daily plan value over a given period, as shown in the table below.

Loyalty bonuses are paid by adding units to the plan, providing it’s in force when the bonus is due, and are calculated as follows:

Loyalty bonus due date Percentage of average daily plan value used to calculate the bonus units
5th plan anniversary 0.5% of the average daily plan value up to the 5th plan anniversary
10th plan anniversary 0.75% of the average daily plan value between the 5th and 10th plan anniversaries
15th plan anniversary 1% of the average daily plan value between the 10th and 15th plan anniversaries

PIP charges

We charge for managing and investing the plan and our charges are detailed below.

A Yearly Management Charge (YMC), which is a percentage of the fund value, is deducted from each fund and is reflected in the unit prices of the fund each day. The current YMC is 1.35%.

You will receive a discount on the YMC of 0.5% for any top ups made on or after 1st October 2012.

The YMC charge may also be reduced if you’ve paid a total of £125,000 or more into your plan. For more information please refer to the Key Features document.

The YMC for each fund does not include the additional expenses for operating the fund.

These additional expenses are added to the YMC to form a Total Yearly Fund Charge (TYFC)

The table below shows the levels of these other expenses. These figures are estimates:

Fund Name Yearly Management Charge Estimated level of other expenses Current estimated yearly fund charge
Cautious Growth 1.35% 0.09% 1.44%
Balanced Growth 1.35% 0.15% 1.50%
Progressive Growth 1.35% 0.12% 1.47%
Adventurous Growth 1.35% 0.17% 1.52%

Based on fund information as at July 2017. The YMC reduction for top ups made on or after 1st October 2012 is not included in the above table.

We can change most of the charges we make. We may do this if our costs turn out to be unexpectedly high compared to our charges. Charges may increase if:

  • a tax rule or law change increases our costs or decreases our income
  • our costs in respect of the administration of the product increase
  • income from charges is less than we anticipate.
We will give you 3 months’ notice if we increase the charges.

View an example illustration that shows how charges may affect what you might get back

Key points to consider

The proceeds of your plan are payable free of any personal liability to income tax at basic rate, or to capital gains tax.

However, there may be an income tax charge at the difference between the basic rate and higher or additional rate of income tax if:

  • you’re a higher or additional rate tax payer when the gain arises.
  • the chargeable gain results in you becoming a higher or additional rate tax payer.

Depending on how many withdrawals you’ve made before, and how much they were, you can take up to 5% each year of your initial investment without any immediate liability to tax. The 5% amount is known as a tax-deferred allowance.

The maximum amount you can take over the lifetime of the plan using the tax-deferred allowance is the total amount you have paid into the investment. For instance, with an initial investment of £30,000 you could withdraw £1,500 each plan year over 20 years.

The value of any tax benefits of your plan depend on your individual circumstances. Your circumstances and tax rules may change in the future.

For more information please refer to the Key Features Document and Guide to Making Withdrawals

If you are unsure about the tax implications of making a withdrawal from your PIP we suggest that you speak to a tax adviser.

Contact us by phone or in writing

To find out the value of your plan, make additional investments, fund switches, withdrawals or for anything else you would like to talk to us about your PIP, you can call us on 0800 141 418.

Our lines are open from 8am to 6pm Monday to Friday and from 9am to 12.30pm on Saturday. Your call may be recorded for quality and training purposes.

Alternatively you can contact us in writing at:
Scottish Widows
PO Box 28116
15 Dalkeith Road
Edinburgh EH16 5BU

To allow us to deal promptly with your request, please ensure you include:

  • your account, plan or policy number
  • your full name
  • your address
  • how you would like us to reply and your contact details (e.g. telephone number or email address)
  • your signature, which provides with us with your consent to complete your instruction.

Once we have received your letter, we aim to respond to your request within five working days. Please note in order to process some requests, we may need to get in touch with you for additional information. Therefore to avoid any delays, please can you include a daytime contact number or email address.