Smoothed Return Announcement
Prudential With-Profits Fund
In 2025, broadly positive, but uncertain and volatile market conditions, combined with the With-Profits Fund’s ability to invest across regions and in both public and private markets, helped support strong performance. As a result, a positive return of 11.6% (gross of tax) was achieved before charges and the effects of smoothing*.
In 2026, our With-Profits Fund managers will continue to evolve our savings and investment asset portfolios and capture new investment opportunities from around the world. Our managers aim to secure the highest total return for the Fund (after any tax and investment expenses) while maintaining an acceptable level of risk and protecting our customers.
*This describes the main asset pool in our With-Profits Sub-Fund, which is relevant to all of our Income Choice Annuity customers. Please see information specific to your Plan to find out more.
We aim to ensure those with an annuity get their fair share of the With-Profits Fund's investment returns via the announced Smoothed Return. In addition to the investment returns on the Fund, the Smoothed Returns we announce depend on several factors including:
The announced Smoothed Return can be changed and isn't guaranteed until it's due to be paid on your next Plan anniversary. It could even be negative, for example, if stock markets perform badly.
The effect of the Smoothed Return we announce on your income is included in your yearly statement.
This leaflet explains the 2026 Smoothed Return Announcement for the Income Choice Annuity.
How does this affect your Income Choice Annuity?
| Effective Date (Annuity Start Date) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Announced Smoothed Return Year | 9/03/09 to 05/04/09 | 06/04/09 to 05/04/10 | 06/04/10 to 05/04/11 | 06/04/11 to 05/04/12 | 06/04/12 to 05/04/13 | 06/04/13 to 05/04/14 | 06/04/14 to 05/04/15 | 06/04/15 to 05/04/16 | 06/04/16 to 05/04/17 | 06/04/17 to 05/04/18 | 06/04/18 to 05/04/19 | 06/04/19 to 05/04/20 | 06/04/20 to 05/04/21 | 06/04/21 to 05/04/22 | 06/04/22 to 05/04/23 | 06/04/23 to 05/04/24 | 06/04/24 to 05/04/25 | 06/04/25 to 05/04/26 |
| 2026 | 9.0% | 8.0% | 9.0% | 9.0% | 8.5% | 9.5% | 8.5% | 8% | 8.5% | 8.5%* | 8.0%* | 8.5%* | 8.5%* | 8.5%* | 8.5%* | 8.5%* | 8.5%* | 8.5%* |
| 2025 | 8.0% | 7.5% | 7.5% | 8.0% | 7.5% | 7.5% | 7.5% | 7.0% | 7.5% | 7.5%* | 7.0%* | 7.5%* | 7.5%* | 7.5%* | 7.5%* | 7.5%* | 7.5%* | |
| 2024 | 6.5% | 6.0% | 6.0% | 6.5% | 6.0% | 6.0% | 5.0% | 5.5% | 6.0% | 6.0%* | 5.5%* | 6.0%* | 6.0%* | 6.0%* | 6.0%* | 6.0%* | ||
| 2023 | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0%* | 1.0%* | 1.0%* | 1.0%* | 1.0%* | 4.5%* | |||
| 2022 | 19.0% | 19.0% | 15.0% | 15.0% | 14.5% | 14.5% | 14.5% | 14.0% | 14.0% | 10.0%* | 10.0%* | 10.0%* | 10.0%* | 9.0%* | ||||
| 2021 | 5.0% | 4.0% | 2.5% | 2.5% | 2.5% | 2.5% | 2.0% | 2.0% | 2.0% | 0.5%* | 0.5%* | 0.5%* | 4.5%* | |||||
| 2020 | 17.5% | 15.5% | 13.0% | 13.0% | 13.0% | 13.0% | 13.0% | 12.5% | 12.5% | 6.5%* | 6.5%* | 4.5%* | ||||||
| 2019 | 2.5% | 1.0% | 1.0% | 1.0% | 1.5% | 1.5% | 1.5% | 1.0% | 1.0% | 1.0%* | 4.5%* | |||||||
| 2018 | 12.0% | 11.0% | 11.0% | 11.0% | 11.0% | 11.0% | 9.5% | 8.0% | 8.0% | 6.0%* | ||||||||
| 2017 | 10.0% | 9.0% | 8.0% | 8.0% | 8.0% | 8.0% | 7.0% | 6.0% | 6.0% | |||||||||
| 2016 | 5.0% | 5.0% | 4.0% | 4.0% | 3.5% | 3.0% | 2.5% | 5.0% | ||||||||||
| 2015 | 8.5% | 8.5% | 7.0% | 7.0% | 6.5% | 6.0% | 5.0% | |||||||||||
| 2014 | 8.0% | 7.5% | 6.5% | 6.5% | 6.5% | 6.0% | ||||||||||||
| 2013 | 6.0% | 5.0% | 4.5% | 4.5% | 6.0% | |||||||||||||
| 2012 | 7.0% | 6.5% | 4.5% | 6.0% | ||||||||||||||
| 2011 | 9.0% | 7.1% | 6.5% | |||||||||||||||
| 2010 | 8.5% | |||||||||||||||||
| 2009 | 7.1% | |||||||||||||||||
* This applies to customers originating from our Flexible Lifetime Annuity (FLA) only.
Source: Prudential. Past performance isn’t a reliable indicator of future performance. Changes in the income payable from an Income Choice Annuity will depend on the relationship between the Smoothed Return announced and the Required Smoothed Return needed to maintain your chosen income. The income from an Income Choice Annuity can fall as well as rise at each plan anniversary, subject to any guaranteed minimum level of income (known as the Secure Level) that applies. The Smoothed Return can be changed and it’s not guaranteed until it becomes payable at the next plan anniversary.
Where applicable, our Smoothed Returns include additional money we shared with our Income Choice Annuity customers as part of previous year’s Bonus Declarations. Our Smoothed Returns aren’t guaranteed. To protect the interests of all customers, we may need to take back this additional money in the future. There’s currently no expectation that this will happen, and we would only expect to consider it in very unusual circumstances, such as a significant market crash.
Information about our With-Profits Fund
The Prudential Assurance Company Limited With-Profits Fund is the largest With-Profits Fund in the UK and is financially very strong. The Fund consists mainly of with-profits business, but it also contains a significant amount of non-profits business. More details can be found in our Principles and Practices of Financial Management (PPFM), you can find this on our website pru.co.uk/ppfm.
The total level of assets in the With-Profits Fund was £130bn at 30 June 2025.
Smoothed Returns are the way you receive your share of the profits of the Fund.
