Choose how much to withdraw. This could be
- a fixed amount
- a percentage of the current value
- a percentage of the original sum invested.
Contents
Managing your investment bond
Before making any changes to your bond:
- Please make sure you understand your options and how they might affect your plan. Because once you've told us what you'd like to do, it may not be possible to change your mind.
- We recommend you get financial advice. See ‘Getting financial advice’ for more information about this.
- Please remember that your product is designed to be a medium to long term investment, so 5 to 10 years or more.
- Remember, the value of your investment can go down as well as up, so you might not get back the amount you put in.
Understanding your options
You can top-up your bond at any time.
Your bond is invested in the Distribution Fund only. You're unable to switch out of this fund.
You can
- fully cash-in your bond.
- cash-in part of your bond.
You can
- set up or change regular withdrawals.
- withdraw the distribution income.
Please contact us to find out more.
Things to consider
If you're thinking about making changes to your bond, here are some key points to keep in mind.
- It may create a tax liability (see ‘Tax' section below).
- It could affect your Personal Allowance and entitlement to tax credits.
- Withdrawals or cashing-in from the With-Profits Fund may result in a Market Value Reduction which could reduce the amount you receive.
- You may face early cash-in charges.
- Some bonds limit the amount you can take out through regular withdrawals.
- If you’re invested in one of the PruFund Protected Funds, any withdrawals will reduce your guaranteed amount.
Whether taking a lump sum from your bond or making regular withdrawals, there could be tax implications. Whether you'll need to pay tax depends on
- your personal tax situation, and
- the timing and amount of your withdrawals.
Taking a lump sum (full or partial cash-in)
When cashing-in all or part of your bond, you can
- cash-in whole segments, or
- spread the amount equally across a number of segments.
Making regular withdrawals
You can withdraw up to 5% of your original investment each year without immediate tax liability. If you don’t use the full 5% in a year, you can carry it forward. Taking more than this could lead to a tax liability.
There’s more information in our guide to tax on your investment bond
Tax rules can change, you may want to seek advice.
Getting financial advice
If you’re making an important financial decision, or thinking about your longer term financial health, then we recommend you get financial advice.
- You should speak to your financial adviser if you have one.
- If you don’t have an adviser, you can search for an independent financial adviser by visiting unbiased.co.uk or by calling them on 0800 023 6868.
- You could speak to M&G Advice. Whether it's about financial planning, accessing your pension, making sure you get the most from your tax allowances or protecting your loved ones; whatever your financial goals – we can help.
Next steps
If you’re thinking of making changes to your plan, including adding more money, we always recommend you speak to your financial adviser. They can help you understand if making changes is right for you and fits with your aims and circumstances. If you don’t have a financial adviser, you can find one at unbiased.co.uk
Using an adviser means the Financial Ombudsman Service offers you protection against the advice they give you. If you go ahead without advice, you’ll be taking responsibility for your own choices and how your money is invested. Whether you get advice or not, if you feel you haven’t been treated fairly, you can refer any matter to the Financial Ombudsman Service. They help settle individual disputes between consumers and businesses providing financial services.
Please complete the Additional Investment Application Form and send this to us along with your payment.
The easiest way to withdraw a lump sum (full or partial cash-in) from your bond is through our Online Service. You can do it at a time that suits you. Just log in or register, select the bond you’re looking to withdraw money from, and follow the instructions to make a withdrawal.
Once you've told us what you'd like to do, you can't change your mind, so it's important to make sure you understand all your options and the impact of any changes you make.
Please call us on 0345 640 1000 (or +44 178 644 8844 from abroad) if you're wanting to to set up or change regular withdrawals.
We may record your call for training and quality purposes. To learn how we use your personal data, visit the My Data page.
