Member borne charges and transaction costs

• Example member 1: the youngest member (age 42) who is therefore 23 years from their retirement age of 65 with a current fund of £1,030;
• Example member 2: a member of average age (age 58) who is therefore 7 years from their retirement age of 65 with a current fund of £6,060.

The effect of costs and charges on the Cash Lifestyle Strategy (which is the strategy within which members are invested unless they self-selected investment funds), the Global Real Estate Equity Index Fund (the fund with the highest costs and charges) and the Cash Fund (the fund with the lowest level of costs and charges) have been illustrated.

The examples below illustrate the effect of the costs and charges on example members’ projected retirement pots over time.

Example member 1:

For the youngest member, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.

Example member 2:

For the member of average age, the estimated impact of costs and charges on the accumulated fund values is shown in the table below.

For the Prudential and Phoenix Life arrangements, we have chosen the following representative members:

• Example member 3: the youngest member (age 43) who is therefore 22 years from their retirement age of 65 with a current fund of £85;
• Example member 4: a member of average age (59) who is therefore 6 years from their retirement age of 65 with a current fund of £2,800.

The effect of costs and charges on the Prudential With Profits and Index-Linked Funds have been illustrated, as these are the funds with the highest and lowest costs and charges.

Example member 3:

The example below illustrates the effect of the costs and charges at different ages on this example members’ projected retirement pot.

Example member 4:

The example below illustrates the effect of the costs and charges at different ages on this example members’ projected retirement pot.

• The illustrations assume no further contributions are paid;
• Fund values shown are estimates and are not guaranteed (they have been rounded to the nearest £10);
• Representative members are based upon the Scheme’s membership as at 31 March 2024 for the L&G arrangement and the Prudential Series 3 arrangements, 1 April 2023 for the Prudential Series 1 arrangements and 1 April 2023 for the Phoenix Life arrangement;
• The illustrations are shown in today's terms, and do not need to be reduced further for the effect of inflation, which is assumed to be 2.50% p.a.;
• A floor of 0.0% p.a. has been used for transaction costs if these were negative so as not to potentially understate the effect of charges on fund values over time;
• Growth rates are those used by the providers in members' annual benefit statements;
• The projected growth rates and costs and charges assumed in the illustrations are as follows: