Bonus Declaration FAQs February 2024

Who is affected by the Bonus Rates Announcement?

All Prudential customers who have a With-Profits element to their plan, except for investments made in any of the PruFund funds.

These include:

  • Prudence Bond and other investment bonds
  • International Prudence Bond
  • Prudential International Investment Bond
  • Prudential Personal Pension
  • Scottish Amicable Personal Pension
  • Prudential Savings Endowment
  • Scottish Amicable Savings Endowment
  • Prudential Mortgage Endowment
  • Scottish Amicable Mortgage Endowment
  • With-Profits Pensions Annuities
  • Former Equitable Life With-Profits Annuities
  • Flexible Retirement Income Annuity
  • Income Choice Annuity

Annual/Regular and Final Bonuses are the way you receive your share of the profits of the Fund.

What bonus rate will I get as a result of this year's declaration?

Annual/Regular and Final Bonuses are the way you receive your share of the profits of the Fund. Different types of plan receive different bonus rates. See the Annual/Regular Bonuses for our With-Profits products.

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

Annual bonus rates have either been increased or maintained at the same level as we declared last year, which will continue to add to the guaranteed benefits of customers’ plans. Final bonus rates for most customers have increased when compared to those declared last year, which means that most customers will see an increase in the value of their plans compared to last year. Final bonus may vary and isn’t guaranteed.

We’re also delighted to have additional money in our With-Profits Sub-Fund to share with some of our With-Profits customers at this bonus declaration which increases the unsmoothed value of their plans by 1.25%. The amount being shared is £1bn. The additional money shared is reflected in our final bonuses from this year. You shouldn’t expect to get additional money in the future. There’s also a chance we might have to take back the additional money distributed this year (or in previous years) in future but, unless something very unusual happened, we wouldn’t expect to have to do this. You can find out more on our website at:

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.

Any final bonus declared in February 2024 may be payable when customers leave the With-Profits Fund, in the forthcoming bonus year. Any final bonus isn’t guaranteed.

How do I find out how the declaration impacts me?

We will send you a statement each year, which will show the impact of the bonus declaration on your Plan. See the bonus rates declared for your product.

What determines what I might get back?

There are a number of factors that affect the amount you get back from your Plan, which cannot be predicted. These include:

  • future investment performance
  • our charges and costs
  • costs of guarantees
  • smoothing*
  • tax
  • other business risks e.g. changes in regulatory requirements or taxation

*Our With-Profits Fund aims to smooth some of the extreme ups and downs of investment performance in order to provide a more stable return from year to year.

Why is the return on my Plan different to the overall return for the With-Profits Fund?

Generally, the better our With-Profits Fund performs, the more scope we'll have to pay bonuses. We aim to pay you a fair share of the investment return over the lifetime of your investment. Try to keep in mind that the total bonuses added to your Plan won't reflect the performance of the underlying fund exactly because of, for example:

  • charges
  • the effects of smoothing and
  • any applicable tax.

Please see information specific to your Plan to find out more.

How strong is the Prudential With-Profits Fund?

The Prudential Assurance Company Limited (PACL) With-Profits Fund is the largest and one of the financially strongest in the UK. The size and strength of our Fund allows us to invest in a very wide range of asset types and individual companies.

Following the merger of the Scottish Amicable Insurance Fund (SAIF) with the With-Profits Sub Fund how is my plan affected?

Following the merger of the SAIF fund with the with-profits sub-fund (WPSF) on 1 April 2021, ex-Scottish Amicable With-Profits planholders are now invested in the WPSF. Please visit for more information on the merger.

I have a mortgage endowment with Prudential - what does a red, green or amber letter mean for me?

You should have received regular letters over the last few years telling you whether your Plan is on track to repay your mortgage. These are called re-projection letters. We monitor how many of our endowment customers plans are and aren’t expected to meet their repayment targets, based on accepted industry guidelines. We show this on your letter as red, amber or green. Green means it’s on track (but not guaranteed) and likely to meet repayment targets. Amber means there might be a shortfall. Red means there’s likely to be a shortfall.

If it’s amber or red, the letter will also tell you what your options are and what you need to do next.

I have a mortgage endowment plan with Prudential and I’ve had a letter saying it might not be enough to pay off my mortgage. What action should I take?

As a result of turbulent market conditions in some past years, the payouts of some mortgage endowment plans may have fallen. This could mean that the amount you receive from your Plan may not be enough to pay off your mortgage, and you may have a shortfall. If you've had a letter from Prudential we understand that you may be concerned about what to do next.

You’ve got two main options:

  • You could consider using any savings or investments you have to pay off the shortfall.
  • You could ask you mortgage lender about switching to a repayment mortgage or taking out a loan to cover the shortfall.

If your Plan is the only way you have of paying off your mortgage, you should speak to your mortgage lender right away. If you want more information you can write to Prudential, Lancing, BN15 8GB, quoting your Plan number.

What are your thoughts on future bonus rates?

Future bonus rates will depend on how well the Fund does in the future. The Prudential Assurance Company Limited With-Profits Fund is the largest and one of the financially strongest in the UK. The size and strength of our Fund allows us to invest in a very wide range of assets and individual companies.

Are you making changes to your Market Value Reduction (MVR) approach?

A Market Value Reduction (MVR) is a deduction we may make on certain withdrawals or switches from, or between, our With-Profits Funds. We're not currently planning any changes to our MVR approach. We regularly review our approach in the light of emerging market conditions and reserve the right to change this without notice. For more information on an MVR please see our Market Value Reduction - A clear explanation document.

Related Content

Annual Bonus Rates Table February 2024

View our Regular/Annual Bonuses that will be added to our With-Profits range from 1 April.

With-Profits FAQs February 2024

The frequently asked questions give high level information about investments in With-Profits.

With-Profits Bonus Declaration February 2024

We’re pleased to let you know we’re keeping annual bonus rates at the same level as last year for all our customers.