For UK financial advisers only. Not approved for use by customers. Visit the Prudential customer website For UK financial advisers only. Not approved for use by customers. Visit the Prudential customer website
Prudential Investment Plan

Prudential Investment Plan

The Prudential Investment Plan is a single premium investment bond that allows your clients to invest in a wide range of funds.

  • Access to our Multi-Asset Fund range

  • Full, partial and regular withdrawals

  • Flexible access to the investment

  • Free fund switching

  • Tax-efficient withdrawals

  • Annual Management Charge discounts

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Product details

Key documents

Key Information Documents (KIDs)

Features and benefits

  • 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.

  • 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.

    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 customer 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.

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)   

Contributions & withdrawals

Contributions

  • Minimum initial investment: £10,000 (after any set up Adviser Charges)
  • Maximum investment: £500,000 (including initial investment and additional top-ups)  

For requests to invest more than £500,000, please contact your Account Manager.

Withdrawals

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.

Regular and partial withdrawals from a With-Profits Fund* may incur a Market Value Reduction (MVR).

Download the Key Features Document (PDF) for more information.

* Access to the Prudential With-Profits Optimum Return and Optimum Bonus Funds is no longer available to new customers investing in Prudential Investment Plan (PIP) on or after 11 September 2017. This information is only applicable to policyholders pre 11 September 2017.

Investment information

Fund 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.

Fund option  
PruFund range of funds PruFund Funds aim to grow your client's money while giving a smoothed investment experience. They do this by investing in Prudential's With-Profits Fund.
With-Profits Funds* Aiming to deliver long-term returns whilst smoothing some of the extreme ups and downs of the market through a bonus system. (Prudential With-Profits Optimum return and Optimum Bonus Funds are no longer available to new business*)
Dynamic Portfolios Five portfolios helping your client to target different levels of risk and potential return.
Dynamic Focused Portfolios Five portfolios investing in a range of investment funds, designed to meet different objectives and target different attitudes to risk.
Additional funds Access additional internally and externally managed funds, which offer a range of assets to suit differing client needs.

See the Prudential Investment Plan fund guide for more details on the funds available. 

* Important information: Access to the Prudential With-Profits Optimum Return and Optimum Bonus Funds is no longer available to new customers investing in Prudential Investment Plan (PIP) on or after 11 September 2017. However, if you have an existing client who became a policyholder before 11 September 2017, they will still be able to top up or switch into the Prudential With-Profits Optimum Return Fund and the Prudential With-Profits Optimum Bonus Fund.

With-Profits

The Prudential With-Profits Funds are designed to spread the investment risk by investing in a range of different assets, and are managed by Prudential's Portfolio Management Group Ltd (PPMG).

The Prudential With-Profits Optimum Return and With-Profits Optimum Bonus Funds are no longer available to new customers investing in Prudential Investment Plan on or after 11 September 2017.

If you have an existing client who became a policyholder before 11 September 2017, they will still be able to top up or switch into the Prudential With-Profits Optimum Return Fund and the Prudential With-Profits Optimum Bonus Fund.

Find out more about the With-Profits Fund.

With-Profits Fund guarantees

For investments in the With-Profits Optimum Return and Optimum Bonus Funds, we offer a Market Values Reduction-free guarantee on death.

The total deduction for the guarantee charge over the lifetime of your plan is not currently more than 2% of any payment made to the fund.  Our charges may vary in the future and may be higher than they are now. Charges may vary if, for example, the long-term mix or type of assets held within the With-Profits Fund is changed.

Market Value Reduction

For investments in the With-Profits Optimum Return and Optimum Bonus Funds*, a Market Value Reduction (MVR) may apply if the client switches funds, withdraws money or if the plan is cashed in. However, we offer an MVR-free guarantee on death. 

Market Value Reductions are our way of protecting the interests of all our With-Profits customers, balancing the interests of continuing investors with those who wish to cash-in their plan.

Learn more about when an MVR may or may not apply in our Market Value Reduction Explained (PDF) document.

* Important information: Access to the Prudential With-Profits Optimum Return and Optimum Bonus Funds is no longer available to new customers investing in Prudential Investment Plan (PIP) on or after 11 September 2017. However, if you have an existing client who became a policyholder before 11 September 2017, they will still be able to top up or switch into the Prudential With-Profits Optimum Return Fund and the Prudential With-Profits Optimum Bonus Fund.

PruFund Expected Growth Rates

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.

PruFund guarantees

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 (PDF) for full details on guarantee terms and charges for the Prudential Investment Plan, Flexible Retirement Plan and Trustee Investment Plan.

Charges

The main charges will be:

  • Annual Management Charge
  • Charges for guarantees (where applicable)
  • Adviser charge (set up charge and ongoing charges)

Annual Management Charge

We will take a charge every year for managing the plan and investments.

  • 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.

  • With-Profits Funds: the charge depends on the performance of the fund, in particular, the investment returns and our expenses. Download the Key Features Document (PDF) for more detail.

Further information on how much we charge 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.

Fund Size Discounts

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+

0.525

Fund switching charges

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 document (PDF).

Guarantee charges

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 our guarantee charges can be found in the Guarantee options document (PDF).

Charges for other funds

For specific fund charges, download the Prudential Investment Plan fund guide.

Adviser Charges

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 (PDF) for the Prudential Investment Plan.

© Prudential 2018