| Effective Date (Annuity Start Date) |
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Announced Smoothed Return Year | 09/03/09 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 |
| 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% | 7.1% | |||||||||||||||
| 2009 | 7.1% | ||||||||||||||||
Smoothed Return Announcement
In 2024, the ability of our multi asset, globally diversified With-Profits Fund gave us the advantage to be able to seek out and benefit from opportunities across a wide range of different asset types. The Fund was able to invest across different regions, in both public and private markets, in which many saw growth despite uncertain economic conditions. As a result, a positive return of 7.3% (gross of tax) was achieved before charges and the effects of smoothing*.
In 2025, our With-Profits Fund managers will continue to evolve 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 effective date of the annuity
- how we expect investments to perform in the following months
- our views on mortality
- adjustments for smoothing
- your Plan's charges
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 2025 Smoothed Return Announcement for the Income Choice Annuity.
2025 Smoothed Return Announcement
How does this affect your Income Choice Annuity?
* 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.
Our Smoothed Returns include, where applicable, additional money we shared with our Income Choice Annuity customers as part of last year’s Bonus Declarations. Our Smoothed Returns aren’t guaranteed. There’s also a chance we might have to take back the additional money distributed (in previous years) in the future, to protect the interests of all customers. Unless something very unusual happened, we wouldn’t expect to have to do this.
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 backing the With-Profits business in the Fund was £119bn at 30 June 2024*.
* This figure includes the assets backing the former Scottish Amicable Life Assurance Society business.
Smoothed Returns are the way you receive your share of the profits of the Fund.
© Prudential 2025
"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.