RETIREMENT ACCOUNT - Scottish Widows

1 Document InfoNotesForm54866 Job ID57134 SizeA4 Pages32 ColourCMYKV ersionJANUARY 2016 Operator Info1 ALI28/01/1623456789101112131415 RETIREMENT ACCOUNTYOUR GUIDE TO RETIREMENT ACCOUNT INVESTMENT OPTIONSFor existing Lloyds Banking Group pension customers aged 55 and over and applying directly with Scottish WidowsProof number1234 Mandatory checksNew Brand - use approved template (check size) Footer/Form number/version date is correct Spell check If Spec changes notify the ACCOUNT ManagerCheck version date matches DMS COMPARE ALTERATIONS TO MARKED UP PDF Layout/textRemove bad line breaks/check paragraph returns not in text Check all hyphenation/n-dashesQuote marks/apostrophes appear correctlyRemove double spaces (except deliberate) Telephone numbers/dates/postcodes are not splitNo full stop after URLsFolio/page numbers are in correct order/positionPage headings/folios match contentsFonts used (see INFO panel) Images/graphicsTables/boxes/charts/graph s are on brand (Guidelines page 58)Infographics Guidelines page 59) Graphs/charts match figures and axis correctlyMiscellaneousMost recent logos and images are usedCheck FSA replaced with FCA and Services to Conduct Colour split (CMYK or spot) Forms can be completedEnvelopes/letters check positionOperator infoBRAND CHECKED (INITIALS)OPERATOR CHECKED InitialsALIPBDate28/01/1623/02/15 INTRODUCTIONNEW PENSION FREEDOMS MEAN YOU NOW HAVE MUCH MORE FLEXIBILITY IN RETIREMENT .

2 THIS MEANS YOU MAY BE LOOKING TO TAKE SOME OF YOUR PENSION FUND AS A CASH SUM AND LEAVE THE REST INVESTED, OR PERHAPS TAKE A REGULAR challenge for you is deciding how to invest this remaining money. To help you meet this challenge, we have put together a package of carefully selected investment solutions for customers who have decided to access some of their pension. These investment options are explained in this guide. They have been created with the help of industry experts, and aim to help you achieve what you want without taking more risk than you re comfortable with. As well as the investment options detailed in this guide, you may also select from other funds from the Scottish Widows pension fund range and Fixed Term Cash Deposits: please contact us for more 1 INTRODUCTIONPAGE 2 WHAT ARE THE Scottish Widows INVESTMENT OPTIONS?PAGE 3 HOW DO I DECIDE WHAT S BEST FOR ME?

3 PAGE 4 INVESTMENT OPTIONS FOR RETIREMENT PLANNINGWHAT ARE GOVERNED INVESTMENT STRATEGIES?PAGE 5 THE GOVERNED INVESTMENT STRATEGIES RANGE PAGE 6 LIFESTYLE SWITCHING EXPLAINEDPAGE 7 PENSION PORTFOLIO FIVEPAGE 8 WHAT S MY NEXT MOVE?PAGE 9 INVESTMENT OPTIONS FOR RETIREMENT INCOMEWHAT DO I NEED TO THINK ABOUT IF I WANT TO TAKE AN INCOME?PAGE 10 HOW DO I CHOOSE A PENSION PORTFOLIO FUND (OR FUNDS)? PAGE 12 WHAT S MY NEXT MOVE?PAGE 13 APPENDIXSECTION 1 Scottish Widows INVESTMENT APPROACHESPAGE 14 SECTION 2 FUNDS INFORMATION, AIMS AND RISKS PAGE 22 SECTION 3 CHARGES PAGE 23 SECTION 4 GOVERNED INVESTMENT STRATEGIES INVESTMENT DETAILS 1 RETIREMENT ACCOUNT Investment OptionsINTRODUCTIONNEW PENSION FREEDOMS MEAN YOU NOW HAVE MUCH MORE FLEXIBILITY IN RETIREMENT . THIS MEANS YOU MAY BE LOOKING TO TAKE SOME OF YOUR PENSION FUND AS A CASH SUM AND LEAVE THE REST INVESTED, OR PERHAPS TAKE A REGULAR challenge for you is deciding how to invest this remaining money.

4 To help you meet this challenge, we have put together a package of carefully selected investment solutions for customers who have decided to access some of their pension. These investment options are explained in this guide. They have been created with the help of industry experts, and aim to help you achieve what you want without taking more risk than you re comfortable with. As well as the investment options detailed in this guide, you may also select from other funds from the Scottish Widows pension fund range and Fixed Term Cash Deposits: please contact us for more investments are available to you through the Scottish Widows RETIREMENT ACCOUNT , which offers both pre RETIREMENT ( RETIREMENT Planning) and post RETIREMENT ( RETIREMENT Income) benefits. The investment choices you can access depend on whether you will be coming into RETIREMENT Planning or going straight into RETIREMENT Income.

5 You should read RETIREMENT ACCOUNT : Your Guide to RETIREMENT ACCOUNT and accessing your benefits (ref no 54901) for more details. Everyone s circumstances and needs are different. We cannot provide investment advice. This guide is designed to give you relevant information to help you make an informed decision, but does not constitute 1 INTRODUCTIONPAGE 2 WHAT ARE THE Scottish Widows INVESTMENT OPTIONS?PAGE 3 HOW DO I DECIDE WHAT S BEST FOR ME?PAGE 4 INVESTMENT OPTIONS FOR RETIREMENT PLANNINGWHAT ARE GOVERNED INVESTMENT STRATEGIES?PAGE 5 THE GOVERNED INVESTMENT STRATEGIES RANGE PAGE 6 LIFESTYLE SWITCHING EXPLAINEDPAGE 7 PENSION PORTFOLIO FIVEPAGE 8 WHAT S MY NEXT MOVE?PAGE 9 INVESTMENT OPTIONS FOR RETIREMENT INCOMEWHAT DO I NEED TO THINK ABOUT IF I WANT TO TAKE AN INCOME?PAGE 10 HOW DO I CHOOSE A PENSION PORTFOLIO FUND (OR FUNDS)? PAGE 12 WHAT S MY NEXT MOVE?

6 PAGE 13 APPENDIXSECTION 1 Scottish Widows INVESTMENT APPROACHESPAGE 14 SECTION 2 FUNDS INFORMATION, AIMS AND RISKS PAGE 22 SECTION 3 CHARGES PAGE 23 SECTION 4 GOVERNED INVESTMENT STRATEGIES INVESTMENT DETAILS 2 RETIREMENT ACCOUNT Investment OptionsHOW DO I DECIDE WHAT S BEST FOR ME?After working hard to build up your pension savings, you will be faced with a potentially tricky challenge how do you provide for your RETIREMENT and how long will your money are literally hundreds of investment options available to UK pension investors, so we have put together a package of investment options which we believe provide the sort of solutions that could meet your needs, including taking regular income withdrawals over an extended period or taking cash lump sums over a relatively short be aware that, as with most investments, there are no guarantees. Choosing suitable investments and levels of income can be complex, and we recommend that you seek professional financial thinking about what you want to do with your pension pot, we believe there are some key questions:1.

7 Do you want to take your money as a one-off cash payment (or a number of cash payments)?2. Do you want to take a regular income? If so:a) What level of income do you want to take?b) How long do you need this income to last?3. How much risk are you comfortable with?Everybody s different and your circumstances may well change over time, so there are no hard and fast rules. But here are some further questions that you may need to address: Do you have other investments or savings to live on? What would happen if your pension pot dropped dramatically in value? Would you be able to maintain your current lifestyle if your money ran out in 5 or 10 years? How long do you want to hold the investment for? Are you happy to take a long-term view and not worry about short-term dips in your savings, or are you uncomfortable when markets become volatile? Are you comfortable with taking some risk to potentially increase growth, or would you rather minimise the risk as much as you can?

8 WHAT ARE THE Scottish Widows INVESTMENT OPTIONS?The options we are offering are built around our Scottish Widows Pension Portfolio pension funds. Most of our Pension Portfolio funds are multi-asset funds , which means they invest in more than one type of investment. They are designed to aim for different investment returns, but this means they also take different amounts of investment risk. Most of these funds invest in stocks and shares (also known as equities) and fixed interest investments (also known as bonds). If a fund invests in equities, it means the fund is buying a small part of a company, usually one that is listed on a stock exchange. Equities rise and fall in value, and those who own them (or funds that invest in them) can also receive a slice of the company s profits in the form of dividend payments. Bonds are issued by a government or company to borrow money.

9 The bond is bought by investors, who will normally receive annual interest payments and be repaid in full at a set later date. Bonds are generally regarded as less risky than equities, but can still rise and fall in Pension Portfolio Five pension fund is different, in that it invests mainly in cash and near-cash investments. It is a low risk option in comparison to the other investment solutions in this guide, but this also means it has significantly less potential for growth. Please see the page 7 for full diagram below gives an indication of the general risk and reward for different types of investments. Within each investment type, the level of risk can vary depending on the specific investment you choose to invest Risk highCashBondsSharesPotential Investment Returnlow highPlease remember that with investments like these there are no guarantees, and there is a risk that the value of your plan could go down as well as up, depending on investment performance (and currency exchange rates where a fund invests overseas), and may fall below the amount paid general, the more equities a fund holds, typically the more that fund could go up and down (also known as volatility).

10 So, while such a fund may have more growth potential, equally it has a higher chance of losing money. With bonds it s likely that any ups and downs will be smaller, and therefore it s likely that performance should be steadier. Most investors will want to hold investments in both, to potentially benefit from any significant growth through equities but also to have the less volatile performance that bonds generally is why we believe for customers looking to stay invested and take an income in RETIREMENT , multi-asset funds like our Pension Portfolio Funds could be suitable investment ACCOUNT Investment OptionsHOW DO I DECIDE WHAT S BEST FOR ME?After working hard to build up your pension savings, you will be faced with a potentially tricky challenge how do you provide for your RETIREMENT and how long will your money are literally hundreds of investment options available to UK pension investors, so we have put together a package of investment options which we believe provide the sort of solutions that could meet your needs, including taking regular income withdrawals over an extended period or taking cash lump sums over a relatively short be aware that, as with most investments, there are no guarantees.