Member borne charges and transaction costs

• Example member 1: the youngest member (age 44) who is therefore 21 years from their retirement age of 65 with a current fund of £1,200; and
• Example member 2: a member of average age (age 59) who is therefore 6 years from their retirement age of 65 with a current fund of £6,600.

The effect of costs and charges on the Cash Lifestyle Strategy (which is the strategy within which members are invested, unless they have chosen to invest in other funds), the Future World Multi-Asset Fund (the fund with the highest costs and charges in this Scheme Year) and the UK Equity Fund (the fund with the lowest level of costs and charges in this Scheme Year) have been illustrated.

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

Example member 1:

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

Example member 2:

For the example average member, 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 one representative member (example member 3). This is the youngest member (age 44) who is therefore 21 years from their retirement age of 65 with a current fund of £2,800.

The effect of costs and charges on the Prudential and Phoenix Life With Profits Funds have been illustrated, as these were the only material funds held in these arrangements at the end of the Scheme Year.

Example member 3:

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

• The illustrations assume no further contributions are paid;
• Starting fund values shown are estimates and are not guaranteed (they have been rounded to the nearest £10);
• Representative members are based upon the membership of Prudential S1 policies as at 31 March 2026, Prudential S3 policies as at 31 December 2025 and Phoenix Life policies as at 31 March 2025;
• 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 2.5% p.a.;
• Transaction costs have been averaged over up to five years in line with statutory guidance to reduce the level of volatility. A floor of 0.0% p.a. has been used for transaction costs if these were negative in any year 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: