A Phoenix Life with-profits pension fund pools savers' money and adds bonuses; Phoenix sets out the rules in one document and bonus rates in fund leaflets.
If you hold an old pension with Phoenix Life, or one that came to it from Britannic, this page explains what a with-profits fund is and where the figures are published. Clerical Medical pensions sit with Scottish Widows instead (see below). Values can fall as well as rise, and you may get back less than was paid in. Your own papers decide whether an old with-profits guarantee is worth keeping. Set your Phoenix statement beside the policy terms with an FCA-authorised adviser; to get a free phone call from one, send the form on this page.
Which funds sit behind a Phoenix Life with-profits pension?
Phoenix Life Limited's Principles and Practices of Financial Management (PPFM), dated as at 1 October 2026, says its long-term business fund is "internally segregated into 17 funds", and the list includes the Britannic With-Profits Fund. Each fund has its own section in the document, so the rules for one old policy can differ from another's.
Phoenix's own customer page asks which company your policy was with before it moved to Phoenix, and its drop-down list includes Britannic Assurance. Phoenix says your answer makes sure the information you see is accurate for your policy, and that your annual statement explains what type of with-profits policy you have.
Clerical Medical is a separate case. Scottish Widows' contact page gives a phone line and postal address for a "Clerical Medical Personal Pension", and its with-profits page lists a 2015 scheme moving Scottish Widows plc's long-term business to Clerical Medical Investment Group Limited. So Scottish Widows deals with Clerical Medical pensions: ask it which fund covers your plan, and see our look at Scottish Widows pensions.
Britannic With-Profits Fund bonus rates and returns at July 2026
Figures differ fund by fund and change over time, so the dated numbers below come from one leaflet only: the Britannic With-Profits Fund leaflet for ex-Britannic Assurance personal pensions, correct at 1 July 2026.
- The annual bonus rate for 2025 was 5.5%, the same as for 2024.
- Final bonus rates for plans reaching their selected retirement date in July 2026 depend on the year the units were bought, for example 3.00% for 2025 units and 77.00% for 2006 units, but 0.00% for 2019 to 2021 units.
- From July 2026 a release of surplus was increasing payouts by up to 3.4% for plans receiving a final bonus, and Phoenix says that could "increase or decrease, and could even be removed entirely".
| Year | Fund investment return, before tax, expenses and charges |
|---|---|
| 2025 | 10.2% |
| 2024 | 5.2% |
| 2023 | 8.1% |
| 2022 | -11.9% |
| 2021 | 6.4% |
These are the fund's investment returns, not what a policy receives, which depends on the bonuses added to it. Past performance is no guide to the future, and you may get back less than you paid in.
How do annual bonuses, final bonuses and the guarantee work?
A with-profits fund is, in Phoenix's words, "a pooled investment where all policyholders pay money into the fund through their premiums". Bonuses are how each policy shares in the profit.
- Annual bonus. Phoenix aims to add one to most with-profits policies each year, but because it depends on the fund's performance it "can't guarantee that a bonus will be added every year". Once added it raises the guaranteed benefit. Phoenix's Britannic With-Profits Fund guide for traditional policies first issued by Century Life says added annual bonuses cannot be taken away.
- Final bonus. This is paid when the policy ends, if the underlying value of the policies is more than the value of their guaranteed benefits. It is never guaranteed, and not all types of policy get one.
- The guarantee. For pension policies the guaranteed benefits may include a minimum cash sum or an annuity, any annual bonuses added, or with-profits units with bonuses already added.
That Century Life guide says its traditional pension policies return the premiums paid, without bonuses, on death; the July 2026 leaflet for ex-Britannic Assurance personal pensions instead values units at 100.00p on earlier death.
Could a Phoenix with-profits pension be cut if you leave early?
A market value reduction (MVR) is a cut that may be applied to what you take out. In several fund sections the PPFM says that on surrender the value of each with-profits unit and bonus unit "may be reduced by the application of a market value reduction".
For ex-Britannic Assurance personal pensions, the July 2026 leaflet says an MVR may apply if you transfer, switch units or retire at a time other than your selected retirement date, and that MVRs can change daily. At the selected retirement date or on earlier death the guarantee is that units are valued at 100.00p with no MVR; at other times that price is not guaranteed. That matters before any move covered in our Phoenix Life transfer guide or cashing in.
Whether an MVR applies to your plan today is something only Phoenix can say; the July 2026 leaflet asks you to contact it to find out. Before moving a with-profits pot, an adviser can set a possible MVR against the guarantee you would give up; ask for a ring-back on the short form here.
Does a guaranteed annuity rate matter?
Some policies have a guaranteed annuity rate (GAR), which lets you convert your cash sum into an annuity at a stated rate. Phoenix says "it's important to check whether you have a GAR and how it operates, as this may give you a higher pension", and that your annual statement shows if you have one. The Century Life policies guide adds that the rate could be valuable if it beats what other providers offer. Compare it with the choices in how a pension annuity works and your options at retirement.
Where do you find the PPFM and the latest bonus declarations?
The full PPFM is on Phoenix's document library, and the Century Life policies guide says you can ask Phoenix to send you a copy. For one fund, start with its Q&A guide (it describes the PPFM as the "fuller, more technical explanation") and its information leaflet, which Phoenix says holds the latest annual bonuses, final bonuses, investment return and asset mix. Phoenix's With-Profits Committee, independent of Phoenix Life, advises on fair treatment of with-profits policyholders.
For how Phoenix is judged overall, see are Phoenix Life pensions any good; for a dependant claiming, Phoenix Life pension death. Other insurers' funds are in Standard Life's and Prudential's guides, and costs in pension charges.
Common questions on Phoenix and Britannic with-profits pensions
Is Britannic part of Phoenix?
The PPFM lists a Britannic With-Profits Fund within Phoenix Life Limited, and its Britannic section says the fund holds business transferred to Phoenix Life Limited under a 2006 scheme from Britannic Assurance, plus the with-profits policies of Century Life.
Can a final bonus be lower than the one on my statement?
Yes. Phoenix says the final bonus may differ from any figure shown on annual statements or projections.
Does every Britannic fund policy get a final bonus?
No. The Century Life policies guide says ex-Prosperity Life policies are not eligible for final bonuses, and some ex-Britannic Assurance personal pension units currently get 0.00%, as the July 2026 figures above show.
How is the Britannic personal pension money invested?
On 31 December 2025 the leaflet puts 54% in growth assets such as company shares and property, and 46% in fixed interest stocks and cash.
Can an adviser tell me if my guarantee is worth keeping?
Pension Wise gives free guidance (see what Pension Wise is). For someone to weigh your policy papers, other pensions and tax together, put your number on the enquiry form and a call will follow from an adviser.