Standard Life cuts bonuses for 600,000 policyholders However, Margaret Flaherty, a spokeswoman for Standard Life, said:"We're pleased to say that customers have seen a year-on-year increase in the value of their plan." Standard Life said lowering the bonus rate would give it greater "investment freedom," as these payments have to be reserved for. But Patrick Connolly of AWD Chase de Vere said: "Unfortunately the days when Standard Life was considered to be one of the premier providers of with-profits investments seems to be long gone. The trend of lower bonuses and reduced payouts looks set to continue almost regardless of the underlying performance of their with-profits funds. He pointed out that in 2008 a £200 per month pension, maturing after 20 years paid out £92,735. Today that figure is just £77,703. There has been a similar collapse in the payouts on endowments. In 2008 a £50 a month endowment, maturing after 25-years would have paid £37,763 - today it pays just £27,791. Laith Khalaf of Hargreaves Lansdown added: "It's interesting to note the relatively low levels of equity in these funds. This may be fine for more conservative investors, but what is the point of a with-profits funds which smooths the ups and downs of the stock market, when it is hardly invested in the stock market at all. He added: "Historically Standard Life has been one of the better run funds, but with-profits funds remain an outdated and opaque investment product. The good news is that Standard Life has confirmed that most of its policies don't know have hefty exit fees [known as Market Value Reductions, or MVRs]. This now gives investors freedom to transfer elsewhere if they wish. Mr Connolly urged investors to review their policies, though said for those with guaranteed bonuses rate, or near their maturity date, they are probably best staying put. For many policyholders the best advice may still be to stay put, but perhaps to prepare themselves for the likelihood of more disappointing news next year.