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Adviser Centre

Fixed Term Retirement Plan

At a Glance

Choice

Your clients can choose the level of income and maturity to suit their individual circumstances. They can select a higher income with a lower maturity value, or a lower, or nil income with a higher maturity value, all with a term between 3 and 40 years. The choice is theirs!

What is it?

  • The Fixed Term Retirement Plan is a contract that allows your clients to receive regular income payments over a term of between 3 and 40 years, with a fixed maturity payment at the end of the term. They pay us a lump sum and we then commit to pay them a regular income monthly, quarterly, half yearly or yearly over a fixed term of their choice.  We will then pay a fixed maturity amount at the end of the term.
  • It pays out a set level of income and a fixed maturity value, so your clients know exactly what they're getting and when.
  • Your clients can choose a nil income option, allowing them to lock away their money for a chosen period, safe in the knowledge of what they will get back.
  • Minimum investment of £10,000, either by transferring all or part of an existing pension plan(s) or by making a lump sum personal pension contribution.

 

Consider if your clients

  • Are aged 55 or over.
  • Want to withdraw money from their pension pot by receiving regular income payments over a period of their choice, with a fixed maturity value at the end of the period.
  • Don't want the value of their pension pot to go up and down depending on investment performance and want to know exactly how much they will receive back and when.
  • Want a fixed maturity value at the end of the plan term that they can use as they wish, for example:
    • To invest in another Fixed Term Retirement Plan.
    • To purchase a lifetime annuity.
    • To transfer to another pension scheme of their choice.
    • To take as a lump sum, which would be subject to income tax.

Once the term of your client's plan comes to an end and we have paid your client the maturity value, set at outset, your client will receive no more income from us. The plan does not pay an income for life.  If your client uses the maturity value to provide them with further income, the value may not be enough to provide the same level of income that they were receiving during the plan term.

Why choose us?

Established

We’re one of the UK’s leading financial services companies and have been established for 179 years.

Immediate retirement personal pension

Your client can pay a one-off contribution to our personal pension plan. We’ll add tax relief before using the fund to provide them with a pension income.

Any contributions made over the current Annual Allowance of £40,000 for tax year 2015/2016 could be subject to a tax charge.