Key Features of the Forester Life Personal Pension Plan

Its aims

  To provide a straightforward, low cost way for you to save for your retirement using tax concessions.

  To build up a fund that you will be able to convert into a regular income when you retire.

  To give you the option of taking some of your fund as a tax-free cash lump sum at retirement.

  To achieve tax-efficient medium to long-term investment growth in a risk-controlled stakeholder fund which meets stakeholder standards.

  To reduce the investment risk as you approach retirement by following a 'lifestyle' investment strategy.

Your Commitment

  To contribute a regular amount each month and/or invest lump sums until your intended retirement date. Monthly contributions will increase each year in line with inflation.

  You will not normally be allowed to take any money from your Plan until you are aged at least 50 (55 from April 2010).

  You should review the amount you contribute regularly.

  You may need to increase your monthly contribution and/or make additional single payments in order to achieve the pension income you want when you retire.

Risk Factors

  The value of your Plan may fluctuate as the value of the investments in the Forester Life Stakeholder Funds can go down as well as up.

  If you exercise your right to cancel, the amount returned to you may be lower if the price of units bought on your behalf has fallen.

  If you stop paying or reduce your regular savings, or retire earlier than you had intended, your benefits may be lower than you had expected.

  If pension rates are lower than expected when you retire your pension income will be reduced.

  The plan charges may be higher than expected.

  You may be subject to a tax charge if you build up total pension funds in excess of the Lifetime Allowance (£1.6m for 2007/08, £1.65m for 2008/09).

  The favourable tax treatment and contribution limits of Personal Pensions may change in the future.

  Whilst this account meets the standards for a stakeholder product this does not necessarily mean that the investment is suitable for you or that there is any guarantee of performance.