Fixed Term Retirement Plan
What is a Fixed Term Retirement Plan?
A fixed term regular income with a guaranteed maturity value. Your client receives a regular income over a defined period of time and will receive a maturity amount on reaching the end of the term.
Your client can choose the income and maturity value they need, so they'll know exactly what they'll be receiving and when. They can also choose not to have a regular income and instead have only a maturity value, payable on reaching the end of the term.
- Your client can choose a term between 3 and 40 years (limited to a maximum term of 25 years for non-advised transactions).
- Your client can opt to guarantee these payments in the event of their death, up to the full term.
- Choosing a full term guarantee will cover all income payment amounts where chosen, as well as the full maturity value.
- Clients can choose payment frequencies to be monthly, quarterly, half yearly or yearly; in advance or in arrears.
Who is our Fixed Term Retirement Plan for?
- Clients who want an alternative to a flexi-access drawdown plan.
- Clients who want a simple and flexible retirement solution.
- Clients aged 55 and over.
- Clients who want security without having to commit to a lifetime annuity.
- Clients who don't want the value of their pension pot to go up or down depending on investment performance, but want to know exactly how much income they will receive and when.
- Those who have a minimum investment of £10,000, after any tax-free cash and an adviser charge, if applicable.
How can it help?
- It can reduce the investment risk of all or part of their pension pot.
- It can provide an income until your client is ready or eligible to buy another product - for example, an lifetime annuity.
- Your client can use our Fixed Term Retirement Plan as part of a flexible retirement solution. It could allow them to delay taking other pension benefits or provide a much needed income until their other benefits become payable.
- A client who wants the option to guarantee the income will continue to be paid in the event of their death. If they choose a full term guarantee, this would also include the full maturity value.
- A client who wants to manage their income to maximise tax efficiencies.
View our death benefit example for our Fixed Term Retirement Plan - PDF file: FTRP Death Benefit Comparison Q0055421 PDF size: 38KB
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.