2023 Bonus Rates for former Equitable Life With-Profits Annuity Customers

In 2022, our globally diversified With-Profits Fund was able to perform very effectively in extremely challenging investment markets and provide some protection to our investors. A small negative return of -1.5% (gross) was achieved in an environment where many major equity and bond markets suffered double digit losses. 

In 2023, the team will continue to take decisions that allow them to manage the Fund prudently. We’ll 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.

Your level of income at the start of your Plan depended on your Anticipated Bonus Rate (ABR) and whether your Plan had a Guaranteed Interest Rate (GIR). The higher your combined ABR and GIR, the higher your income in the early years. This combination also meant a higher chance of falls in income in the future. Your future level of income depends on the combination of:

  • The level of Regular Bonus, Overall Rate of Return (ORR) and Interim Rate of Return (IRR) we declare relative to your ABR
  • Any GIR

The combination of the Regular Bonus, ORR and IRR we declare represents your fair share of the profit, after charges and smoothing, earned on the With-Profits Fund since the transfer of your Plan to Prudential on 31 December 2007.

So what are the 2023 Bonus Rates?

The 2023 bonus rates to be applied to your annuity on the plan anniversary following 1 April 2023 are:

  • Overall Rate of Return: 4.5%
  • Interim Rate of Return: 5.0%
  • Regular Bonus: 0.0%

The IRR can change or be removed at any time.

The same ORR applies to all plans and can be negative.

How does this affect my income?

Former Equitable Life With-Profits Annuity customers, who are receiving their Total Annuity, will see average year-on-year changes in income of 5.6% before allowing for their Anticipated Bonus Rate (ABR) and any Guaranteed Interest Rate (GIR), as a result of the bonuses declared in the February 2023 Bonus Declaration. This means that for an annuity customer with a combined ABR and GIR of 6.5%, their income may decrease by up to 0.9% at their next Plan anniversary on or after 1 April 2023.

After allowing for the ABR and any GIR, most customers will see a fall in their income at their next plan anniversary following this bonus declaration. Although this fall will not trigger payment of the Guaranteed Annuity. 

Where customers are already in receipt of their Guaranteed Annuity, they’ll see their income reduce by the level of their ABR.

Only plans issued before 1 July 1996 are subject to a Guaranteed Interest Rate. This is 3.50% for all of these plans.

If you've got any questions about this years Bonus Declaration, please read our frequently asked questions.

Related Content

Frequently asked questions relating to the 2023 Bonus Declaration

In 2022, our With-Profits Fund was able to perform very effectively.

The Government Compensation Scheme

On the 20th October 2010 the Government announced its intentions and commitment to a transparent and fair payment scheme of compensation.

Historic information about the transfer

In this area you will find information on the transfer in 2007 and special bonus payment in 2008.

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