Fixed Term Annuities

When it comes to your clients’ futures, no one can see what’s in store. But for those over 55 looking for some clarity, it might be worth considering a fixed term annuity – such as our Cash-Out Retirement Plan or Fixed Term Retirement Plan.

Both of our fixed term annuity products offer clients the certainty of guaranteed payments. Your clients can choose payment frequencies to be monthly, quarterly, half yearly or yearly; in advance or in arrears. 

They can be used to top up other income, and offer choice of when they’re paid – giving your clients control and some peace of mind over their future income. In addition, the death benefit option lets them ensure their dependants will continue to receive an income in the event of their death during the term of their plan. 

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Fixed Term Retirement Plan Cash-Out Retirement Plan
Age Age 55 and over  Age 55 and over
Term  3 - 40 years  3 - 40 years 
Minimum investment  £10,000  £10,000 
Maturity value
  •  
Advance cash withdrawals* 
  •  
Guaranteed payment period

*Your client has the option to take up to three advance withdrawals from the full maturity value. This can be done at any time during the term of the plan, and is subject to a minimum withdrawal of £5,000 each time. This is only available if they choose a full term guarantee.

For more information please refer to the PDF file: Fixed Term Retirement Plan Advised Key Features Q50899 PDF size: 279KB

Who's it for?

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Fixed Term Retirement Plan Cash-Out Retirement Plan
  • Want a guaranteed income but with the option to obtain their maturity value early.
  • Want an alternative to a flexi-access drawdown plan.
  • Want security without having to a commit to a lifetime annuity.
  • Don’t want the value of the pension to go up or down, depending on their investment performance, but want to know exactly how much income they’ll receive and when.
  • Want to take a pension pot as cash over several years to maximise tax efficiency.
  • Want to know exactly how much income they'll receive and when.
  • Want security without having to commit to a lifetime annuity.
  • Want to take a pension pot as cash over several years to maximise tax efficiency.

How can it help?

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Fixed Term Retirement Plan Cash-Out Retirement Plan
  • Reduce the investment risk of all or part of their pension pot. 
  • Provide an income until your client is ready or eligible to buy another product. For example a lifetime annuity.
  • Allow them to delay taking other pension benefits or provide an income until their other benefits become payable.
  • Provide them with access to funds in case of urgent need.
  • If your client chooses a guaranteed minimum payment period to apply for the full term of the plan, they will now have the option to cash in the value of their plan at any time throughout the term or transfer to another registered scheme.*
  • Provide an income until another source, such as a final salary pension, starts.
  • Supplement their income if your client wants to reduce their working hours.
  • Allow your client to defer taking their State Pension, so the payments received when they do take it, are higher.
  • If your client chooses a guaranteed minimum payment period to apply for the full term of the plan, they will now have the option to cash in the value of their plan at any time throughout the term or transfer to another registered scheme.*

*The cash in value is calculated by giving a present day value of future income payments due. It's important to note that the cash in or transfer value will always be less than the remaining payments due over the term of the plan.

For our Fixed Term Retirement Plan

Once the term of your client's plan comes to an end and we've paid your client the maturity value, set at outset, your client will receive no more income from us.

The plan does not pay income for life. If you 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.

For our Cash-Out Retirement Plan

Once the term of your client's plan comes to an end, your client will receive no more income from us. There is no maturity value and there will be no other payments made. The plan does not pay income for life.