Changing the investments in your drawdown plan

If you’re considering a change to the investments including funds held in your plan, we’ll be happy to help. Please be sure you understand all your options, and the effect of any changes you make. There are a few things you should think about before you make any decisions.

You should consider speaking with your financial adviser first. If you don’t have one or have any questions once you’ve read this summary, or need any help understanding your options, just call us on 0808 234 2372, or +44 178 644 8844 if you’re calling from abroad.

How your drawdown plan works

A drawdown plan is designed to give you flexible access to your pension pot and control over where your money is invested. You can choose when and how much money to take out, subject to any limit that might apply and therefore help to manage your income needs.

The value of your investment can go down as well as up and you may not get back the amount that you put in.

Your investment choice

We can discuss where your money is currently invested, and your choices, if you call.

You can switch some or all of your money between funds at any time, however there are limits to the number of funds you can invest in.

Things to consider before making your decision

There are a few things you should think about before making changes to your investments:

  • There’s no guarantee that one investment will perform any better than another. In making your decision you should consider your attitude to:
  • There may be a charge to switch between investments.
  • Switching out of some funds may restrict where you can reinvest.
  • Charges may differ between investments.
  • Switching out of the With-Profits Fund could result in a market value reduction, causing the amount switched from the fund to be reduced.
  • You may lose any guarantees, benefits, options and features on your existing investments.
  • Possible delays: in some circumstances your switch instruction could be delayed. We’ll let you know if this applies.

It’s important to know that the value of investments can go down as well as up and you could get back less than you paid in.

Protecting yourself from pension scams

According to Action Fraud, the UK’s fraud and internet crime reporting centre, an estimated £1.2bn is lost to scams every year. So if you’re thinking of reinvesting the money from your plan, take a minute to find out more, and stay ahead of the scammers. There is also some very useful information available from The Pensions Regulator.

What to do now

Changing your investment is a big decision. You should speak with a financial adviser first. If you don’t have one, you can get details of financial advisers from pru.co.uk and selecting ‘contact a financial adviser’. You may be charged for their services.

Give us a call on 0808 234 2372 or +44 178 644 8844 if you’re calling from abroad. We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.

We’re here 8am - 6pm Monday to Friday and happy to help in any way we can. Please make sure you have your plan number to hand when you call.