Standard Life hits 750,000 customers with bonus cut

Standard Life is cutting the bonus rates paid out on some of its with-profits policies.

The insurance giant blamed "unsettled market conditions" for reducing rates by up to 40 per cent. The move will affect around three-quarters of a million policyholders.

Those affected have unitised life or pensions plans without price growth guarantees. Bonuses on unitised life plans will fall from 1.25 per cent to 0.75 per cent while pension payouts drop from 1.5 per cent to 1 per cent.

The remaining policyholders have guarantees ensuring price growth of 3 per cent a year on life plans and 4 per cent a year on pension plans.