• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Ch 10 pg 7

S

SABeauty

Member
Hi

I am struggling to see the difference between the total actual deductions to date and effect of deductions to date.

At yr1 they are the same and then change?

Actual deductions are using assumed central rate of investment - what happens in effect of deductions part?

Thanks
 
"Total actual deductions to date" is just the sum of all the deductions from the start of the policy up to the end of year X, where any fund-related charges are determined assuming the central investment rate. It's a simple sum - there's no allowing for the time value of money in this column,

The "Effect of deductions to date" is the accumulated value of all the charges by the end of year X. So this represents the effect of the deductions on the total fund value. For example, after 10 years, the deductions add up to 1,880 and if these hadn't been levied, the fund would have been 3,200 higher.
 
Back
Top