For UK financial advice professionals only, not approved for use by retail customers. Click here for the customer website.

Prudential Investment Plan

A single premium investment bond that allows your clients to invest in PruFund and a range of funds.

Online services

Illustrate, apply or manage client servicing
Login

Product documents

Prudential Investment Plan documents
View key documents

Trusts

Trusts mean you can potentially reduce clients inheritance tax liability
Information on trusts

Overview

About the Prudential Investment Plan

Our Prudential Investment Plan is an investment bond that lets your clients invest their money in a range of different funds. The plan aims to grow the value of their investment over the medium to long term (5-10 years).

Your clients can start with a single payment and can then make additional lump sum payments if they want to.

Withdrawals can be made, and they can cash in their plan at any time.

Eligibility criteria

Owner: 

  • UK resident
  • Minimum age: 18 years
  • No maximum age limit

Life assured:

  • Minimum age: three months
  • Maximum age: at outset, 85 years next birthday (for joint life cases at least one life must be less than age 85 when the plan is taken out) 

  • Minimum initial investment: £10,000 (after any set-up Adviser Charges)
  • Maximum investment: £5 million (including initial investment and additional top-ups)

If your client would like to invest more, please contact your Account Manager.

Your clients can:

  • Cash in their plan at any time
  • Take regular or partial withdrawals at any time
  • Set the amount and frequency of regular withdrawals

The maximum level of regular withdrawals during any 12 month period is the greater of:

  • 7.5% a year of the value of the fund, or
  • 7.5% of the total amount paid into the plan

Your client can take up to 5% of their initial investment and any additional investments as a tax-deferred withdrawal each year. Anything above this may be liable to immediate Income Tax. Your client might need to pay tax depending on their circumstances and the options they choose. Tax rules can also change in the future.

All withdrawals are subject to a minimum withdrawal payment of £50.

Download the Key Features document for more information.

Product features

  • Access to Prudential’s Multi-Asset Fund range including the PruFund range of funds.
  • Guaranteed options on our PruFund Protected Funds help provide added security, at an extra cost. The PruFund Protected Growth Fund is currently unavailable to new investments.
  • Your clients can invest in up to 10 funds at any time and can switch money between the funds, with no switching charges.
  • Tax-efficient withdrawals of up to 5% of the investment each policy year for up to 20 years.
  • Discounts on the Annual Management Charge are available depending on the value of the investment.
  • Inheritance Tax planning options: A wide range of trust options available for use with the Prudential Investment Plan.
  • Return of Premium Death Benefit option, giving your client peace of mind that the return on death will always be at least the total amount invested (less any regular or partial withdrawals or any adviser charges), whatever the plan value at that time.
  • The plan provides a small amount of life cover with a basic death benefit of 100.1% of the fund value.
  • The value of any investment and any income taken from it can go down as well as up, so your client might get back less than they put in.
  • Your client might need to pay tax depending on their circumstances and the options they choose. Tax rules can also change in the future.

Key documents

Secure online services for onshore bonds

We offer a range of online services for our onshore bonds to make it even easier to do business with us.

Product document library

Key Information Documents (KIDs)

See Key Information Documents below.

Investment options

There is a wide range of investments for your clients to choose from with access to Prudential’s Multi-Asset Fund range, including the established PruFund range of funds. See the Prudential Investment Plan fund guide for more details on the funds available.

PruFund range of funds

 

  • Aim to grow your client's money over the medium to long term (5 to 10 years or more), while protecting them from some of the extreme short-term ups and downs of direct stock market investments by using an established smoothing process.
  •  

    More about the PruFund range of funds

    Risk Managed Active Funds
    • Is a range of funds to meet different needs for risk and reward
    • Is a fully-diversified actively managed fund option

    More about the Risk Managed Active Funds

    Risk Managed Passive Funds
    • Is a range of funds to meet different needs for risk and reward
    • Offering a lower-cost investment option with the benefit of a multi-asset approach

    More about the Risk Managed Passive Funds

    Additional funds
    • Access additional internally and externally managed funds, which offer a range of assets to suit differing client needs 

    We announce the Expected Growth Rates that apply to the PruFund Range of Funds every quarter.

    Find out more about our Expected Growth Rates, Historic Expected Growth Rates or Unit Price Adjustments for the PruFund range of funds.

    The PruFund Protected Growth Fund is currently unavailable to new investments.

    We offer guarantees for PruFund Protected Cautious Fund and PruFund Protected Growth Fund. At the end of the selected guarantee term the fund will be worth at least the amount your client invested (subject to charges, enhancements or withdrawals).

    Please see The PruFund Range of Funds: Guarantee Options for more details.

    Charges & costs

    We take an Annual Management Charge for looking after your investment.

    • Unit-Linked Funds: we take an Annual Management Charge (AMC) from each of the funds your client invests in. The charge is taken daily as a deduction from the fund.
    • PruFund Funds: we take the AMC for these funds by deducting a percentage of those units from the plan every month.

    There are other costs which aren't covered by the Annual Management Charge. These can include, for example, maintenance costs for property investments and costs associated with investing in infrastructure, such as utilities, transport and renewable energy. These can vary over time.

    Further information on the charges and costs for each fund can be found in the appropriate Key Information Document and Investment Options Documents linked to at the top of this page. The Prudential Investment Plan fund guide also includes information on fund charges and costs.

    We offer Fund Size Discounts on the Annual Management Charge which apply to the whole investment, not just the portion above the threshold levels shown below.

    Assets Under Management (£)
    Fund Size Discount From Annual Management Charge (%)
    <24,999 0.30
    25,000-49,999 0.35

    50,000-99,999

    0.40

    100,000-249,999

    0.45

    250,000-499,999

    0.475

    500,000-999,999

    0.50

    1,000,000-1,749,999

    0.525

    1,750,000-2,999,999

    0.55

    3,000,000+

    0.575

    Your clients can switch funds at any time, but can only invest in 10 funds at any time. We currently don’t charge for switching, but if this changes in the future, we’ll inform your clients. 

    The minimum amount your clients can switch is £500. If they’re not switching the full value of their investment from a particular fund, they must leave at least £500 in that fund.    

    Further details on fund switching can be found in the Fast Facts.

    The PruFund Protected Growth Fund is currently unavailable to new investments.

    We offer guarantee terms for both PruFund Protected Cautious Fund and PruFund Protected Growth Fund, where the guarantee will only apply at the end of the selected guarantee term (the guarantee date) providing your client doesn’t switch out of the funds.

    Once the guarantee term has been selected, the charge will remain fixed throughout the guarantee term. The guarantee will only apply at the end of the selected guarantee term.

    More details about charges can be found in The PruFund Range of Funds: Guarantee Options.

    The level and shape of Adviser Charging is agreed between you and your client.

    There are three types of Adviser Charges:

    • Set-up Adviser Charge: deducted from the initial investment before it is invested in the plan
    • Ongoing Adviser Charge: taken at plan level, will apply across all in-force segments
    • Ad hoc Adviser Charge: after the initial plan is set up, the client can request an ad hoc payment to be made to the adviser

    Ongoing and ad hoc Adviser Charges affect the 5% annual withdrawal limit for Income Tax purposes.

    Find out more about Adviser Charging in the Fast Facts document for the Prudential Investment Plan.

    Illustrate and apply

    Access our online services to illustrate and apply for the Prudential Investment Plan

    Login