Scottish Widows Retirement Account and Stakeholder Pension Key differences April 2017/Review Feb 2018

Retirement Account - overview Retirement Account is a personal pension with a self-invested option if required i.e. a ‘Personal Pension Plus’. Minimum contributions - one of the following is required… £200 pm, £2400 yearly, £10k single or transfer). Illustrations obtained from Extranet . Service Charge tiered (linked to overall value of fund), and Investment Charge on GIS/ Wealth funds. Wide choice of investment options. Governed Investment Strategies (GIS) charged at 0.1% per annum. Wealth Funds also available. Developed to meet the changing needs of customers and now include other retirement outcomes in addition to annuitisation , with 9 ‘glidepaths’ available within Lifestyling option. Lifestyling takes place over 15 years before selected retirement date, and can be selected and de-selected at any time. Retirement Planning (Accumulation) and Retirement Income (Utilisation) available within the same plan. You can still continue to invest whilst also taking an income. Retirement Account allows you to consolidate your retirement savings in one Account by switching and may offer options to investors whose needs cannot be met by their existing plan Retirement Planning (Accumulation) continues to have a max age limit of 75 (individuals cannot obtain tax relief on contributions after 75), but investors can remain in Retirement Income (Utilisation ) post-75. If a HNW client has a post-75 retirement planning, a referral to a Wealth Planner who has additional products within their range is possible. 2 For internal use only

Wealth Funds cost between 0.780.72% to 0.86% Scottish Widows - Retirement Account Product Charges For internal use only Fund Value Service Charge (from 9th January 2017) Investment Charges* £0 - £29,999.99 0.90% 0.1% - 0.86% Depending on Fund GIS charged at 0.1% Wealth Funds cost between 0.780.72% to 0.86% Excludes Higher Yield Funds £30,000 - £49,999.99 0.40% £50,000 - £249,999.99 0.30% £250,000 - £499,999.99 0.25% £500,000 - £999,999.99 0.20% £1m and above 0.10% Note that - Where Governed Investment Strategies are utilised, the total costs do not exceed 1% per annum at any level of investment. Governed Investment Strategies are only available within Retirement Planning element of Retirement Account. - Initial Fees for Single Premiums and Transfer Values can continue to be facilitated through the contract but Regular Premiums investors must pay the Advice Charge directly to UK Wealth. - No ongoing charges are applied to the contract. 3 *AMC’s reflect Total Expense Ratio of funds as at 6th April 2016

Annual Management Charges Retirement Account Wealth Funds – New TERs (Total Expense Ratio) For internal use only Wealth Funds Annual Management Charges Wealth Defensive 0.849% Wealth Cautious 0.821% Wealth Discovery 0.788% Wealth HY Discovery 1 0.856% Wealth Balanced 0.775% Wealth HY Balanced 1 Wealth Progressive 0.750% Wealth Dynamic 0.729% Wealth Adventurous 0.724% The above charges were effective from 6th April 2017 1Higher Yield Funds are designed to produce higher income levels but are not in an Adviser’s permitted investment range 4

Stakeholder Pension (NUPC 5) - Overview . Minimum contribution is £20 (net) …whether regular, single or ad-hoc Stakeholder Pension product charges are influenced by the type of premiums being paid and the term to selected retirement age The permitted fund range – advisers can continue to recommend the 3 Multi-Asset Portfolio funds as follows: Stockmarket Growth Portfolio : Risk Category 5 (High) Strategic Growth Portfolio : Risk Category 4 (Medium-High) Balanced Growth Portfolio: Risk Category 3 (Medium Default fund is the Scottish Widows Consensus Fund. For Risk Category 2 (Low Risk) please read e-action dated 21st June 2016 in full – link to e-action – click here Lifestyling takes place over 5 years if selected, and investment funds are switched into the Pension Protector and Cash Funds in a 75% / 25% split. Lifestyling must be selected at outset, and once removed cannot be restored. The illustration process is a manual process and produced centrally 5 For internal use only

For internal use only

Retirement Account and Stakeholder Pension Other Features, Benefits and Options Product Possible Product Features Retirement Income - Withdrawal Options Guaranteed Annuity Rates Protected Tax- Free Cash With Profits5 Exit Penalties Flexi-Access Drawdown4 Full Withdrawal1 Partial Withdrawal1 (UFPLS) Horizontal Encashment2 Vertical Encashment3 Scottish Widows Retirement Account No Yes Stakeholder Pension (NUPC 5) Unitised Only the Retirement Account can offer Flexi-Access Drawdown which would enable investors to withdraw tax-free cash prior to drawing taxable income from their pension plan 1 25% of withdrawal will be tax-free. Remaining 75% will be fully taxed at source – at emergency tax rates unless we already hold the client’s PAYE tax code in which case this will be used to determine the amount of tax due. Retirement Account can offer full Flexi-Access Drawdown 2 Horizontal encashment means a customer will have the same Asset Mix following the withdrawal as they did prior to the withdrawal 3 Vertical encashment means a customer can select which funds they encash and as a result the product risk profile could change 4 Up to 25% of fund can be paid Tax Free – the remaining 75% would be designated to Income Plan and be fully taxable when withdrawn 5 The Unitised With-Profits fund isn’t available to every policy. If the Unitised With-Profits fund is available to your policy at the time your policy starts, this will be mentioned in your Key Features document and you will be sent a With-Profits Guide. 7 For internal use only

Scottish Widows product comparison For internal use only Retirement Account Stakeholder Pension Retirement Planning (Accumulation) and Retirement Income (Utilisation) available within same plan Retirement Planning (Accumulation ) only Service Investment charges are separate…..generally cheaper when fund values are higher Charges linked to term to retirement and type of premium (single or regular). It is a percentage charge of all assets held, % charge reduces as total value increases Lifestyling over 15 years Lifestyling over 5 years Wide fund choice …GIS and Wealth Funds available Restricted fund choice

For internal use only