Scottish Widows Fund Review (2024)

FAQs

Is Scottish Widows any good? ›

Scottish Widows was awarded five stars in the 'Life and Pensions' and 'Investments' categories in the 2021 Financial Adviser Service Awards. Also, Scottish Widows level and decreasing life and critical illness insurance products received a 5-star Defaqto rating in 2022.

Scottish Widows delivered best return at 12.5 per cent over five years. The fund has 85 per cent of its assets invested in shares. Auto-enrolment provider Nest came close in second, with a return of 11.7 per cent. It takes the first place when the analysed period is only three years, the research shows.

The Best Scottish Widows Pension Funds

Among the best performing Scottish Widows pension funds was the Scottish Widows Pension Portfolio One Pension Series 2 fund.

If you spend all of the money you've taken as cash from your pension, your only source of regular income in the future may be the State Pension. If you're made insolvent or bankrupt, and take your savings as cash, you lose the protection that savings in pensions has against your creditors (people you owe money to).

It's normal for the value of your pension to go up and down over the short term. This is because your pension is likely to be invested in company shares and other stock market -investments that also carry risk.

It is recommended that you review your pensions regularly, at least once a year in order to ensure it is fully optimised to provide for your future.

If you are in ill health you can take your pension benefits before the age of 55, and may be able to take your whole pension pot as tax free cash. If this is the case, then transferring into a retirement account may not be right for you.

A defined contribution pension could be private (set up by yourself) or provided by your employer. This pension is made up of contributions from you, your employer (if applicable) and tax relief from the Government. This can then be used to fund your retirement plans and provides flexibility on how you use the money.

Scottish Widows

How much do Scottish Widows charge? ›

For GIS, our management charge is 0.1% of your pension pot value a year. However, if you expect to take a guaranteed income for life in retirement this will gradually rise to 0.2% a year in the five years before you retire.

The Scottish Widows Pension Fund range has 150+ funds managed by 20+ leading fund management firms.

The short answer is, yes you can. There are lots of reasons you might want to access your pension savings before you stop working and you can do this with most personal pensions from age 55 (rising to 57 in 2028).

Employers can end a pension plan through a process called "plan termination." There are two ways an employer can terminate its pension plan. The employer can end the plan in a standard termination but only after showing PBGC that the plan has enough money to pay all benefits owed to participants.

Scottish Widows is now the insurance arm of Lloyds Banking Group. The Group was formed in 2009, following the takeover of HBOS plc by Lloyds TSB.

Financial Services Compensation Scheme (FSCS)

This means our CS Online service will no longer be available from 13th August 2022 for Scottish Widows Bond, Endowment and Protection customers.

You can withdraw funds from your PIP by either requesting a regular payment or a one off lump sum. If you choose to withdraw more than your 5% tax deferred allowance per year there may be tax to pay.

Employees who have a Scottish Widows Workplace Pension policy number beginning with 'ZU' can transfer other pensions into that policy by calling us on 0800 032 1260 Monday-Friday 9am-5pm or by emailing us to request a transfer.

According to the trade association, a single person will need £10,200 a year to achieve the minimum living standard, £20,200 a year for moderate, and £33,000 a year for comfortable. For couples it is £15,700, £29,100 and £47,500.

Who is UK's biggest pension? ›

Royal London is one the largest mutual life, pensions and investment companies, offering personal and workplace pensions. The Group has around £100 billion funds under management.

A good pension income will be dependent on your own circ*mstances and finances but, as a guide, a good starting point would be around 2/3 of your working salary.

For a quick estimate, try the '50-70' rule. This suggests that you should aim for an annual income that is between 50 and 70 per cent of your working income.

The value of a pension = Annual pension amount divided by a reasonable rate of return multiplied by a percentage probability the pension will be paid until death as promised.

At the age of 50, ideally, you would have wanted to save over 4 times your annual salary if you would like to retire comfortably. At this age, you should be considering putting 25% of your salary into your pension pot, if not more.

Yes, you can take out a lump sum from your pension before 55. But, any amount that is withdrawn from your pension before age 55 is subject to a 55% tax charge.

It is possible to use your pension to clear debt. But taking money out of your pension could leave you in a worse position than you expected.

For many people, paying into a workplace pension is a good idea, even if you have other financial commitments, such as a mortgage or loan. This is because you could benefit from contributions from your employer and tax relief from the government. Over time, this money adds up and can grow.

You can take some, or all, of your pension pot as a cash lump sum, or you can leave it invested. However you decide to take your benefits, you'll normally be able to take 25% of your pension pot tax-free. The rest will be subject to tax.

If you want to opt out, you will need to submit a form, but some pension schemes may allow for opting out online. Your employer will tell you who you need to contact, but they are not permitted to handle the process for you, i.e. by giving you an opt-out form.

Does Halifax Own Scottish Widows? ›

Scottish Widows, Halifax and Lloyds Bank are all subsidiaries of Lloyds Banking Group.

Customers can access Scottish Widows' products and services through Independent Financial Advisers, directly, and through all Lloyds Bank, Bank of Scotland and Halifax branches.

On that same date, the entire business and assets of Clerical Medical Managed Funds Limited, Halifax Life Limited and St Andrew's Life Assurance plc (as well as four other LBG UK Life Insurance companies) was transferred into Scottish Widows Limited.

Flexible access to your pension savings. The ability to take money when you need it is known as flexible access. There are two flexible access options available – Flexi-access Drawdown and Partial Pension Encashment.

A 401(k) allows you control over your fund contributions, a pension plan does not. Pension plans guarantee a monthly check in retirement a 401(k) does not offer guarantees.

It helps to understand that a pension, original called a 'defined benefit' is linked to a monetary payout while retirement is linked to a time frame and an ending of working life. The name retirement pension has been adopted in some cases to link the fund and the timing together, but they are not the same.

Pension funds are made up of a portfolio of assets in which your pension contributions are invested, such as stocks and shares, bonds, cash and commercial property. You can receive a pension from three different sources: the state, personal pensions that you've set up yourself, and workplace pensions from employers.

Typical management fees are taken as a percentage of the total assets under management (AUM). The amount is quoted annually and usually applied on a monthly or quarterly basis. For example, if you've invested $10,000 with an annual management fee of 2.00%, you would expect to pay a fee of $200 per year.

The Fund aims to provide capital growth by investing in regulated collective investment schemes. These collective investment schemes will provide exposure to shares together with exposure to a mix of asset classes (including fixed interest securities, property and cash) and absolute return strategies.

You do not pay National Insurance after you reach State Pension age - unless you're self-employed and pay Class 4 contributions. You stop paying Class 4 contributions at the end of the tax year in which you reach State Pension age.

Can I take 25% of my pension tax free every year? ›

You can take money from your pension pot as and when you need it until it runs out. It's up to you how much you take and when you take it. Each time you take a lump sum of money, 25% is tax-free. The rest is added to your other income and is taxable.

Lump-sum payments give you more control over your money, allowing you the flexibility of spending it or investing it when and how you see fit. Studies show that retirees with monthly pension income are more likely to maintain their spending levels than those who take lump-sum distributions.

Taking money out of your pension is known as a drawdown. 25% of your pension pot can be withdrawn tax-free, but you'll need to pay income tax on the rest. You can choose whether to withdraw the full tax-free part in one go or over time. This is the most flexible option.

File at 65 and you lose 13.33 percent. If your full retirement benefit is $1,500 a month, over 20 years that 13.33 percent penalty adds up to nearly $48,000. AARP's Social Security Calculator can give you a sense of the financial impact of claiming benefits at various ages.

If your retirement plan is a 401(k), then you get to keep everything in the account, even if you quit or are fired. The money in that account is based on your contributions, so it's considered yours.

Market volatility and pensions

It's normal for the value of your pension to go up and down over the short term. This is because your pension is likely to be invested in company shares and other stock market investments that also carry risk.

Our brand icon, the Scottish Widow has been used in advertising since 1986. Our current Widow, Amber Martinez is seen as contemporary, confident, someone who's there watching over and providing support to our customers at key points during their lives.

Scottish Widows can trace its roots back to the early 1800s when the group was set up by a number of Edinburgh businessmen as a fund to care for the widows and families of soldiers killed in the Napoleonic Wars. Lloyds acquired the business in 2000 for around £7bn.

No. Life insurance policies have no cash-in value at any time. Also, if you don't pay your premiums on time your cover will stop, your benefit will end and you'll get nothing back.

Poor performance for investors who hold a Standard Life pension. 104 of the 135 funds analysed consistently performed worse than at least half of their peers and were classified as poor performing 1 or 2-star funds.

How good is Royal London pension? ›

Royal London is by far the most popular pension provider among financial advisers, a new report by research firm Defaqto has found. The mutual came top in both the number of advisers that use its products, and the number who class it as their preferred provider.

You can speak to one of our consultants by calling 0345 716 6777. Our opening hours are: Mon to Fri 9am to 5pm.

You can withdraw funds from your PIP by either requesting a regular payment or a one off lump sum. If you choose to withdraw more than your 5% tax deferred allowance per year there may be tax to pay.

If you are in ill health you can take your pension benefits before the age of 55, and may be able to take your whole pension pot as tax free cash. If this is the case, then transferring into a retirement account may not be right for you.

While the main aim of a pension is to give you an income throughout your retirement, you have the flexibility to take out lump sums whenever you want from the age of 55 – and, in most cases, up to 25% of the total value of your pension can be withdrawn tax free.

For a quick estimate, try the '50-70' rule. This suggests that you should aim for an annual income that is between 50 and 70 per cent of your working income.

In defined occupational schemes they should be a percentage of salary and be around half that of the employer with the total contribution ideally being at least 15% of salary. Private pension plans should allow for flexible contributions. Management charges should be as low as possible.

Pension fund growth hit 9.5% in 2021, up from 4.9% in 2020. Average annual annuity income was 3.9% in 2021, a positive change from the falls of the three previous years.

Pension fund growth hit 9.5% in 2021, up from 4.9% in 2020. That means a more typical 60/40 portfolio (60% equities / 40% bonds) has historically achieved around 4% after inflation. I use a 100% probability of the pension being paid until death because the payer is the federal government.

Should I combine my pensions? ›

By combining your pensions, you can significantly reduce how much you pay in charges. You'll receive less paperwork and can more easily keep track of how your pension is performing. Pension consolidation is particularly useful if you're planning on retiring in the near future.

Can I withdraw my pension early? Under certain circ*mstances, it is possible to withdraw your pension early. However, this can end up being costly. It isn't against the law to withdraw from your pot before your retirement age but you may pay up to 55% tax on your withdrawals.

Scottish Widows, Halifax and Lloyds Bank are all subsidiaries of Lloyds Banking Group.

Financial Services Compensation Scheme (FSCS)

This means our CS Online service will no longer be available from 13th August 2022 for Scottish Widows Bond, Endowment and Protection customers.