Fixed Term Retirement Plan

Some clients might not be ready to make a long-term decision about their retirement income or may be looking to have a mixture of income options to support their retirement. Either way, they may be wondering if they can take an income but still have the assurance of a maturity amount paid out in the future.

Our Fixed Term Retirement Plan is 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. 
  • They can choose a term between 3 and 40 years (limited to a maximum term of 25 years for non-advised transactions).
  • They 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.
  • They can can choose payment frequencies to be monthly, quarterly, half yearly or yearly; in advance or in arrears. 

Fixed Term Retirement Plan is available for clients who:

  • Are aged 55 and over.
  • Want an alternative to a flexi-access drawdown plan.
  • Want a simple and flexible retirement solution.
  • Want security without having to commit to a lifetime annuity.
  • 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.
  • Have a minimum amount of £10,000, after any tax-free cash and adviser charge, if applicable.

Fixed Term Retirement Plan can help to:

  • 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.
  • Lets clients choose the option to guarantee the income will continue to be paid in the event of their death.
  • 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 to the future income payments and/or maturity value due.
    • It's important to note that the cash in or transfer value will always be less than the remaining payments and maturity value due over the term of the plan.
  • A client who wants to manage their income to maximise tax efficiencies.

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.

Case study tool

Use our retirement income case study tool with your clients to illustrate a range of different scenarios which are most relevant to their circumstances.

Other income products