If you’re considering taking part or all of the cash from your plan as a lump sum, we’ll be happy to help. It’s important to note that once you’ve told us what you’ve decided to do, you can’t change your mind. Please be sure you understand all your options, and the effect of any changes you make. There are a few things you and any other plan owner should think about before you make any decisions.
Prudential Savings Account and Prudential Investment Bond are medium to long-term investment plans that accept a mix of regular and one-off payments. They invest in the With-Profits Fund. Both plans also provide a small amount of life and terminal illness cover.
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 options are:
As an alternative you might want to consider taking regular withdrawals.
There are some important things to consider before fully or partially cashing in your plan:
If you took out life cover and/or critical illness cover with your plan, they will be unaffected.
Whether any tax would be due depends on a number of factors including your personal tax position and the timing and amount of cash taken out to date.
Cashing in all or part of your plan can have tax implications. There’s more information in our guide to tax on your investment bond.
Tax rules are complex and require careful consideration and the impact will depend on your individual circumstances. Taxation, legislation and HM Revenue & Customs practice is liable to change without notice. You may want to seek advice.
According to Action Fraud, the UK’s fraud and internet crime reporting centre, an estimated £1.2bn is lost to investment scams every year. So if you’re thinking of reinvesting the money from your plan, take a minute to find out how to stay ahead of the scammers.
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.
Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area from www.pru.co.uk and selecting ‘contact a financial adviser’. Financial advisers will charge you a fee for any advice they give you, but it will be personal to you.
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.