2024 Bonus Rates for former Equitable Life With-Profits Annuity Customers

In 2023, our globally diversified With-Profits Fund produced a positive return in changeable, and fast moving, economic conditions. Our with-profits customers have benefited from investing in a multi-asset, globally diversified fund during this period, with our fund managers taking advantage of the globally diversified nature of the Fund to seek out, and benefit from, opportunities across a wide range of different asset types. A positive return of 4.3% (gross of tax) was achieved.

In 2024, 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 expenses) while maintaining an acceptable level of risk and protecting our customers.

Your level of income at the start of your Policy depended on your Anticipated Bonus Rate (ABR) and whether your Policy had a Guaranteed Interest Rate (GIR). The higher your combined ABR and GIR, the higher your initial income. 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 Policy to Prudential on 31 December 2007.

So what are the 2024 Bonus Rates?

The 2024 bonus rates to be applied to your annuity on the policy anniversary following 1 April 2024 are:

  • Overall Rate of Return: 3.0%
  • Interim Rate of Return: 6.5%
  • Regular Bonus: 0.5%

The IRR can change or be removed at any time.

The same ORR applies to all policies 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 4.1% before allowing for their Anticipated Bonus Rate (ABR) and any Guaranteed Interest Rate (GIR), as a result of the bonuses declared in the February 2024 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 2.4% at their next Policy anniversary on or after 1 April 2024.

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.

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

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

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 2024 Bonus Declaration

In 2023, our globally diversified With-Profits Fund produced a positive return in changeable, and fast moving, economic conditions.

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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