The flexibility of your PIP is one of its key benefits; you can make additional payments, take tax-efficient withdrawals, and move funds to suit your needs. This flexibility means your plan should continue to meet your needs over many years.
However it’s important to consider how these flexible options can affect the value of your PIP over the long term.
You can take tax deferred withdrawals of up to 5% each year. However if your withdrawals are greater than the amount your investment has grown each year, the value of your PIP will decrease over time. If you’re thinking about making a withdrawal from your plan please review all of your options, and their tax implications, before making a decision.
All providers charge for managing investment products, and it’s important to check that the charges are not greater than your investment growth each year otherwise the value of your PIP will decrease over time. Find out more about the charges that can apply to a PIP.
Your fund choice, charges and performance will affect the value of your PIP. It’s important to review your funds regularly to ensure they are performing in line with your expectations. You can find out more about the investment options available for your PIP.
Any additional payments into your PIP will increase its value at that time. Please remember the value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.
What might I get back?
The amount you get back from your PIP isn’t guaranteed and will depend on:
You may get back less than you invested.
Remember that the effect of inflation will reduce the future buying power of what you get back.