The Flexible Pension PlanFor people who like doing their own thing

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:18 pm Page 2

Want a little more choice, a bit more control and a touch more flexibility than a standard personal pensioncan give you? Something a bit more individual?

Please remember that benefits aren’t guaranteed andthe value of investments may go down as well as up.

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:18 pm Page 3

Make sure your pension suits you.

You’re not the same as your colleague. Or your neighbour.Or even your best friend. You don’t have the same needs,the same financial circumstances or the same aspirations.And you may have different needs today than you’ll have inthe future.

So it’s important to choose a personal pension thatreflects that. One that allows you to be in control and tomake your own choices. With the flexibility to changethings whenever you want.

Our Flexible Pension Plan gives you all that. It has all thesecurity and great benefits of a conventional personalpension but with the added flexibility of allowing you totake more control of your investments and choose whereyou want to invest.

So, how does it all work?

Wide investment choiceOne of the main benefits of this plan is the investmentchoice. Basically, there are two parts to this plan — theinsured element and the self-invested element.

The insured elementThis part’s just like a conventional personal pension plan. We offer an excellent range of pension funds which arechosen and closely monitored by our Investment Committee.Some of these are managed specifically for our pensioninvestors by another part of our business, AEGON AssetManagement, and others offer you access to the expertiseof some of the top investment houses in the UK at verycompetitive rates.

The self-invested elementThe self-invested element of your plan is for investors whowant to take an active interest in, and have more control over,their investments. It lets you invest direct in the stock marketas well as in our highly competitive Fund Supermarket. Our Fund Supermarket gives you access to a vast array offunds from a wide range of fund managers. Giving you a reallyeasy way to flex that individuality and make your own choices.

You don’t need to use this part of the plan unless, or until,you want to. And, of course, we won’t charge you for itunless you choose to use it.

Investment controlThe plan gives you control over which funds you invest inand you can vary this at any time to suit the level of riskyou want to take and your investment objectives.

A personal pension with an individual twist

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:18 pm Page 4

Something extra You understand the value of advice. And you know it can give you that bit extra. The Flexible Pension Plan isdesigned for the more sophisticated investor, who wants,and values, advice from a financial adviser. We have a‘menu’ of charging options so that, together with yourfinancial adviser, you can choose the most appropriateoption for you.

Depending on the option you choose, you’ll get eithera fund bonus or a fund value rebate.

Fund bonusIf you stay with us for up to 10 years, you’ll get up to a maximum of 4% of the value of your fund as a bonus, as well as up to a further 0.5% for each year after that.

Any additional increases in contributions, one-offcontributions or transfers will get a separate fund bonus.

However, you need to be aware that bonuses aren’tguaranteed. The fund bonus depends on the originalcontribution level agreed at the start of your plan andassumes that all contributions are paid up to the date the bonus is payable.

Fund value rebateEach month we calculate the total value of your plan. If you’ve chosen to contract out of the State SecondPension this total will include any contracted-out value that you have. If the plan value is at least £20,000, we’lladd units to your plan. If the value is between £20,000 and £250,000, this will be equal to 0.5% a year of yourfund value. If the value is £250,000 or more, the bonus will be equal to 0.6% of your fund value a year.

Contribution type Minimum

Regular monthly or yearly

Single

Transfers

£100 a month or £1,200 a year (However, depending on the charging structure youchoose, you may also have tomake single contributions.)

£2,500 and then £499 for each additional singlecontribution

£2,500 and then £499 for each additional transfer

Flexible contributions to suit youIt’s simple, really. You choose to suit yourself.Contributions to the insured element can be paid:� on a regular monthly or yearly basis� as a series of single contributions � by one or more transfer values from registered

pension schemes� by your employer, as well as yourself

Contributions into the self-invested element of your plan can only be made by single contribution.

You can change how much and when you contribute and make one-off contributions as long as you meet our minimum levels. You can even stop contributionsaltogether.

We like to make things easy for you. So if you want, you can set up your plan so that your contributionsincrease automatically each year. You can choose toeither increase them:� at a fixed percentage from 5% to 15%, or� at a rate in line with the Government’s National

Average Earnings index

AdaptabilityDepending on your circumstances, you can keep theplan as you move from job to job and you can evencontinue to pay if you stop working. Or if you move from employed to self-employed, or vice versa.

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:18 pm Page 5

Tax efficiencyYou get tax relief on the contributions that you pay into the plan. This means that for every £78 you pay,£100 is paid into your plan. The balance is paid by theGovernment. If you’re a higher rate taxpayer, you canclaim the additional tax relief on your yearly tax return.

This information is based on our understanding ofcurrent taxation law and practice, which may change.The value of tax relief depends on your financialcircumstances.

Retire when you wantYou can take your benefits at any time from the age of 50 (rising to 55 from 6 April 2010) until your 75thbirthday. You don’t need to stop working to take yourbenefits — you can retire at a time that suits you buttake your benefits before that if you want.

A tax-free lump sumYou can normally take a tax-free lump sum from yourfund when you take your benefits. You can generally takeup to 25% of your fund but there may be circumstanceswhere the most you can take is more or less than this.Just ask your financial adviser if you want to know more.

Protection if you die If you die before you take your benefits, your fund willbe paid out to your spouse, civil partner, dependants oryour estate as a cash lump sum or a pension. Any lumpsum (including any additional life cover) will be testedagainst your lifetime allowance*, and a tax charge of55% will be payable on any lump sum over your lifetimeallowance. If a pension is paid rather than a lump sumthen this won’t be tested against the lifetime allowance.

*The lifetime allowance is set by the Revenue. The standard lifetime allowance is the total value of allyour pension savings that can benefit from tax-relief(£1,600,000 for 2007/08). If you want more informationabout this, just ask your financial adviser.

Why our Flexible Pension Plan may not suit you Our Flexible Pension Plan is designed as a long-terminvestment and won’t be for everyone. Your financialadviser should explain fully why this plan is in your bestinterests, but there are some situations where it mightnot suit you:� The Flexible Pension Plan is suitable for individuals

who understand the need for initial and ongoingadvice in return for exceptional investment choiceand potentially better performance. However, you may not need this level of advice and choice. If not, a stakeholder pension plan may be more appropriate.

� If your income changes regularly due to the nature ofyour employment, paying regular contributions may notbe to your advantage with certain charging options.

� If there’s a short time between when you take out theplan and when you plan to take your benefits, certaincharging options may not be right for you.

� If you’re only considering investing for a short timebefore moving your money, certain charging optionsmay not be the best thing for you.

� If you’re making regular contributions, with certaincharging options you have to make at least one singlecontribution or a transfer value.

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:19 pm Page 6

Who we are

You probably want to know a bit more aboutwho we are, and why you should trust us withyour financial future.

AEGON Scottish Equitable is part of the AEGON Group, one of the world’s largest pensions and life insurancecompanies. We’ve been around for over 175 years in theUK and our experience spans the pensions, annuities,protection and investment markets. So we’re big, andfinancially strong, which means we’re solid and secure.

Being part of AEGON gives us a distinct edge in themarketplace. Independent industry analysts Standard & Poor’s awarded AEGON Scottish Equitable an AA (verystrong) rating in January 2006. This is one of the highestratings of financial strength a company can achieve.

But large doesn’t mean that we lack flexibility or a personaltouch. We work extremely hard to make sure we give our customers the level of care and service they deserve.You’re an individual — and we do our best to treat you like one.

So you can relax — this all adds up to a company you can trust.

Recent awardsWe’ve taken huge steps this year in giving you the productsand services you really want, and we’re delighted with theawards we’ve won.

� Financial Adviser Life and Pensions Awards 2006:— Pensions Provider of the Year— Second place in Best Individual Pensions Provider

of the Year

� Moneywise Pension Awards 2006:— Best personal pension provider (non-stakeholder)

� Financial Adviser Practiv Service Awards 2006:— Four star rating — Life and Pensions Providers

� e-Excellence ratings in 2006, in association with Money Marketing:— Triple e-Excellence for Individual Pensions for our:

� self-invested personal pensions (SIPPs)� portfolio planning tools� pension tools� unsecured income (drawdown)

— Double e-Excellence rating for Secured Income(Annuities)

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:19 pm Page 7

You’re an individual. Make sure your pension is too with our Flexible Pension Plan.

We hope this brochure has given you a brief guide to our Flexible Pension Plan and how it all works. But if youwant any more information please take a look at your keyfeatures document or speak to your financial adviser.

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:19 pm Page 8

C 250378IND 250280 04/07

Scottish Equitable plc, Registered Office: Edinburgh Park, Edinburgh EH12 9SE. Registered in Scotland (No. 144517). Authorised and regulated by the Financial Services Authority. Member of the AEGON Group. www.aegonse.co.uk

IND_250280_04_07_P4_Approved.qxd 21/3/07 3:18 pm Page 1