OUR WORKPLACE SAVINGS SOLUTIONS - Scottish Widows

1 OUR WORKPLACE SAVINGS SOLUTIONSFor financial adviser and employer use portraitCMYK55023SW55023 - SW - Corp Prop Brochure N21-MAr-201812:24 121/03/2018 12 221/03/2018 12:273 CONTENTSPAGE 4 WORKPLACE SAVINGSPAGE 5 OUR COMMITMENT, FINANCIAL STRENGTH AND EXPERTISEPAGE 6 HOW WE LOOK AFTER THE SCHEMEPAGE 7 INSIGHTFUL GOVERNANCE REPORTSPAGE 8 SHARING KNOWLEDGE AND EXPERTISEPAGE 9 SHAPING OUR INDUSTRYPAGE 10 SUPPORT FOR AUTOMATIC ENROLMENTPAGE 11 DESIGN AND IMPLEMENTATION TEAMPAGE 12 OUR BULK TRANSFER SERVICEPAGE 13 OUR ONLINE SERVICEPAGE 14 DIGITAL PENSION TRANSFER SERVICEPAGE 15 EMPLOYEE ENGAGEMENTPAGE 16 PRESENTATION TEAMPAGE 17 RETIREMENT EXPLAINEDPAGE 18 OUR INVESTMENT APPROACHESPAGE 19 INVESTMENT OPTIONSPAGE 20 KEEPING OUR 200 YEAR PROMISE PAGE 21 OUR DEDICATED SERVICEPAGE 22 LLOYDS BANKING GROUPPAGE 23 OUR COMMITMENT TO THE FUTURE PAGE 24 WHAT OUR EMPLOYERS SAY ABOUT USOur WORKPLACE 321/03/2018 12.

2 274 Our WORKPLACE SavingsWORKPLACE SAVINGSAt Scottish Widows we value building strong long term relationships with our customers and work closely with both employers and advisers. Our flexible proposition means that we can offer support in ways that suit different employers and complement the work of re one of the largest pension providers in the UK, managing over 41,000 schemes for companies of all sizes, across all sectors. We understand that WORKPLACE SAVINGS is a complex market and our strength is in supporting our customers, putting them at the core of everything we COMMITMENT TO MEETING OUR CUSTOMERS NEEDSOur customers told us that they want us to do three things: SHARESUPPORTSIMPLIFY share our knowledge and expertisesupport them through complexitybe easy to do business withSo we ve designed our proposition to deliver against these three requirements.

3 By listening to our customers and always developing our proposition with their changing needs in mind, we ll continue to provide a WORKPLACE SAVINGS proposition that ensures our employers, advisers and members are supported for today and 421/03/2018 12:275 Our WORKPLACE SavingsOUR COMMITMENT, FINANCIAL STRENGTH AND EXPERTISEW orkplace SAVINGS is an important part of our business and we specialise in helping million employees save for their future through a company pension EXPERTISE IN WORKPLACE SAVINGSWe ve helped over 10,100 employers to meet their automatic enrolment responsibilities. Since the introduction of automatic enrolment, we have invested over 100million in our WORKPLACE SAVINGS proposition. In 2016 we invested an additional 50million to transform our digital capability and the ways we engage our customers. In 2017, we committed another 30million to fund further developments in our overall WORKPLACE SAVINGS MORE CHOICE FOR WORKPLACE SAVINGSWe have recently expanded our award winning WORKPLACE SAVINGS proposition to offer broader, more flexible SOLUTIONS to meet a wider range of needs.

4 In addition to our Group Personal Pension proposition, shown in this document, we now have a range of trust and contract based SOLUTIONS including Master Trust, Occupational Money Purchase and Investment Only. We can also offer additional ways for employees to complement their pensions SAVINGS , through a Stocks and Shares ISA and General Investment Account. Please contact us for more information.*Moody s, Standard & Poor s and Fitch ratings correct at February 2018 SINCE THE BEGINNING OF 2016 WE HAVE COMMITTED 80 MILLION to develop our propositionWE HAVE HELPED OVER 10,100 EMPLOYERS through automatic enrolmentA2 Scottish Widows rating from Moody s*AScottish Widows rating from Standard & Poor s*AA- Scottish Widows rating from Fitch* 521/03/2018 12:276 Our WORKPLACE SavingsTHE SIX PRINCIPLES OF GOOD GOVERNANCE1 ESSENTIAL CHARACTERISTICSS chemes are designed to be durable, fair and deliver good outcomes for GOVERNANCEA comprehensive scheme governance framework is established at set-up, with clear accountabilities and responsibilities agreed and made who are accountable for scheme decisions and activity understand their duties and are fit and proper to carry them GOVERNANCE AND MONITORINGS chemes benefit from effective governance and monitoring through their full are well-administered with timely.

5 Accurate and comprehensive processes and TO MEMBERSC ommunication to members is designed and delivered to ensure members are able to make informed decisions about their retirement WE LOOK AFTER THE SCHEMEA pension scheme should always be governed in the best interests of its members. That s where robust governance comes ll protect and promote the interest of the scheme members by following the Pensions Regulator s six principles for good WORKPLACE pension provision. These principles have been put together to make sure pension schemes are set up and administered in a way that helps members get the best outcomes for their 621/03/2018 12:277 Our WORKPLACE SavingsINSIGHTFUL GOVERNANCE REPORTSThe Independent Governance Committee (IGC) is a body of experts who maintain a direct relationship with the Financial Conduct Authority. They hold product providers to account on behalf of those saving in a WORKPLACE personal pension and employees alike need peace of mind that their pensions are robust and well governed.

6 Both pension providers and advisers can support employers in fulfilling their governance responsibilities. For Group Personal Pension and Group Stakeholder schemes we provide employers with a bespoke annual governance report, reassuring them that their scheme is well governed and in good go further than that too. The reports: provide detailed insight which can help your understanding, inform decision making and identify opportunities to improve member engagement look ahead to the following year and present updates on market issues, in everyday language provide an overview on what our Independent Governance Committee has been doing to help deliver a good member more information please visit the IGC section of our website which contains useful film content, biographies and reports provided by our 721/03/2018 12:278 Our WORKPLACE SavingsSHARING KNOWLEDGE AND EXPERTISEOur customers have told us they really value our knowledge and expertise.

7 And because we share it, we re recognised as a go-to organisation in the industry when looking for in-depth analysis, insight and interpretation of changes in the reputation as a thought leader is underpinned by our ground-breaking research, which we publish in our popular annual reports. The reports can be found here Widows RETIREMENT REPORT Saving for later life is at record levels for some of the nation, but many more are putting plans for their financial future on Widows WOMEN AND RETIREMENT REPORTA real life, every day look at women s prospects in retirement. CENTRE FOR THE MODERN FAMILY THE CHANGING FACE OF FAMILIES This report analyses what the future holds for the UK s also have specialists in our Financial Planning team who produce a range of helpful updates around pension planning, tax and regulation on a regular basis.

8 *Data from the Scottish Widows Pensions Index 2016, as included in the 2016 Scottish Widows UK Retirement ReportAll other data from the Scottish Widows Retirement Report 2017 BRITS FEEL STRESSED ABOUT SAVING ENOUGH FOR RETIREMENT have suffered mental health issues as a direct result of money concerns1 IN 6 BRITSN early ONE THIRD(30%) of people get stressed just thinking about their finances for retirement3 IN 10(29%) people over 65 have no pensionof respondents worry they won t have enough money to do things they enjoyof us have difficulty sleeping due to financial worries54%of Brits are not saving adequately for retirement*44%One in ten (14%) of 18-29 year olds have had mental health issues related to their finances14%The health ofFOUR IN TENpeople (40%) in the UK has suffered due to financial concernsNearly half of Brits say financial worries regularly impact their relationships 49%ONE IN TEN9% of over-50s who feel pressure to save into a pension have only just started thinking about retirementof Brits worry they will be bored in retirement13%worry about the cost of long-term care10%of Brits worry they ll be lonely in their old age8%22%RETIREMENT REPORT2017 MINDFUL RETIREMENTSELF-EMPLOYMENT AND THE FAMILYIW PensionsY0117Y2828255195 CustomCMYK55501 Scottish WidowsCMF ReportN02-Feb-201709:12 102/02/2017 09:15 WOMEN AND RETIREMENT REPORTONE GENDER, DIFFERENT LIVES17 Family timeFamily timePerhaps that s what s behind the fact that of those who have taken parental leave, 68% were employees and just 12% self-employed.

9 The flexibility of self-employment may mean sole traders feel they can afford to continue working in some form while their children are very young, whereas the all-or-nothing style of an employed role sometimes doesn t offer that option. GROSS PERSONAL INCOME EMPLOYEE/SELF-EMPLOYED Employee Self-employedUnder 15K 15 30K 30 50K 50 70K 70 100K 100K>Clearly, there are pros and cons of that constant awareness of work , alongside other factors that certainly focus the self-employed mind such as no sick leave, holiday pay or employer pension contributions. But even that problem has empowered many, with more than a quarter (29%) of the self-employed saying they ve become a lot more financially self-sufficient as a result. They ve had , despite the unique challenges faced by the growing ranks of the self-employed, our research clearly demonstrates that those who did take the plunge find it a positive experience.

10 In fact, more than twice as many self-employed workers say they would encourage their children to become their own bosses as would discourage them (18% vs 7%).But would the next generation be keen to go it alone? 11%21%19%30%20%19%11%13%67%51%AGES OF CHILDREN (FOR ALL THOSE WHO HAVE CHILDREN) 4 AND UNDER5-1112-1516-18 OVER 18 HOUSEHOLD SIZE20%12%44%32%55%35% Employee Self-employed Employee Self-employed21%5%2%34%13%1%33%24%20%0% 16-1702/02/2017 09:159801A COMPLEX LIFEARGUABLY, THE KEY PROBLEM THAT WOMEN FACE IN RETIREMENT IS THAT THEIR LIVES DO NOT MIRROR THOSE OF MEN. DIFFERING WORKING PATTERNS, PRIORITIES AND ATTITUDES TO SAVING HAVE AN IMPORTANT ROLE TO PLAY IN THE DISCREPANCY BETWEEN MALE AND FEMALE RETIREMENT 821/03/2018 12:279 Our WORKPLACE SavingsSHAPING OUR INDUSTRYTo support our customers, we regularly provide insight and commentary across all major adviser and consumer publications, and work with Government and regulators to help shape future industry CONSULTATIONS TO WHICH WE HAVE CONTRIBUTED PUBLIC FINANCIAL GUIDANCE REVIEW.