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

2. 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

3. 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% %
Depending on Fund
GIS charged at 0.1%
Wealth Funds cost between % 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

4. 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

5. 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

6. For internal use only

7. 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

8. 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

9. For internal use only