It is easy to see why with-profits proved so popular. Indeed if you ask most people what they want even in 2014 they describe the aim of with-profits funds: to offer part of the upward curve of stock markets, in a trade-off for a cushion against some of the downside.
That is why, despite front page headlines screaming the demise of this product and regulators tackling actuaries who struggled to explain their “smoothing” techniques, with-profits policies remain and still come in many forms.
This guide will explain what your options are for closed with-profits pots, the shape of popular policies of this type today, and what to consider when contemplating your with-profits options.
Supporting material for this guide has been provided by: Mike Kipling, with-profits actuary at Friends Life; Paul Turnbull, actuarial and capital director at Aviva; and Phil Brown, head of retirement propositions at LV.