If you’re considering setting up regular withdrawals from your plan, or changing your withdrawal amount, 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.
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Prudential Savings Account and Prudential Investment Bond are medium to long-term (5 to 10 years or more) 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 so you might not get back the amount you put in.
You can't set up regular withdrawals while making regular payments. Access to regular withdrawals could depend on the amount paid into your plan and when those payments were made. Where regular withdrawals are available there may be a limit to the amount of cash that you can take out. Call us to find out more.
You’ll need to think about the following:
As an alternative to regular withdrawals, you could consider cashing in all or part of your plan.
There are some important things to consider before making withdrawals:
If you took out life cover and/or critical illness cover with your plan, they will be unaffected.
Whether withdrawals from your plan will result in a tax liability will depend on a number of factors including your personal tax position and the timing and amount of any withdrawals.
You can withdraw up to 5% of the original investment every year for the first 20 years of the plan without immediate tax liability. This 5% is cumulative, which means that if you don’t withdraw the full 5% in one year, you can carry the percentage balance forward to future years. You can withdraw more than this but you could have a tax liability.
There’s more information in our guide to tax on your investment bond.
You might need to pay tax depending on your circumstances and the options you choose. Tax rules can also change in the future. You may want to seek advice.
Fraudsters are always out there and constantly changing their tactics. 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 at pru.co.uk. 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 (except bank holidays) and happy to help in any way we can. Please make sure you have your plan number to hand when you call.