Why should I invest with Sheffield Mutual?
The Society has been providing savings, investments and protection policies to its members since 1892 and as we are owned by members not shareholders, any surplus funds are used for their benefit.
What is the Pension Bond?
The Bond is designed for a single premium investment for a minimum period of five years. The amount payable when it is withdrawn will be the Sum Assured plus bonuses which are added during the life of the Policy. The final value will depend upon investment performance but bonuses are declared annually by the Society’s Committee of Management acting on Actuarial advice. Bonus levels are not guaranteed.
How much can I invest?
The minimum investment is £1,000 with a maximum in any one financial year (January to December) of £50,000 per individual.
How long does the money have to remain invested?
The recommended minimum investment period is five years after which you can either withdraw your investment or leave
it to earn future bonus until such time as you need it. If you surrender your Bond within five years of commencement then
a surrender penalty will apply.
Are there any guarantees?
Providing the Bond runs for at least five years the Society guarantees that you will get back a minimum Sum Assured of 101% of the initial premium. Bonuses when declared are added to the Sum Assured. In the event of adverse investment conditions the Society reserves the right to apply a Market Value Reduction to the Sum Assured and vested bonus. However the Society guarantees that the application of the Market Value Reduction will not reduce the proceeds below 101% of the initial premium. A Market Value Reduction will not be applied in the event of the policy becoming a claim as a result of the death of the policyholder.
Can I make any withdrawals before the end of five years?
Yes, it is possible to surrender your Bond but as this is a medium to long term investment early surrender may result in you receiving less than you originally invested. It is not advisable to invest in this Bond if you know at the outset that you will require the money within five years.
Who can invest in a Pension Bond?
The Bond is designed for use by Trustees of occupational or personal pension schemes including self invested personal pension schemes (SIPP’s)
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