
Our fixed term plans
Guaranteed retirement income ending with or without a lump sum
Understanding our Fixed Term and Cash-Out Retirement Plans
Our fixed term plans (referred to by MoneyHelper as fixed term annuities) provide a guaranteed income for a set period of time.
We offer two fixed term plans, the Fixed Term Retirement Plan and a Cash-Out Retirement Plan.
Both of our plans let you use your pension pot to get a regular, guaranteed income for between three and 25 years. The difference between them comes into play when they end:
- Our Fixed Term Retirement Plan pays out a lump sum when it ends
- Our Cash-Out Retirement Plan ends without paying out a lump sum
Apart from that, they work in a very similar way to each other.
Why get a quote with L&G?
Our fixed term plans have the following key features:
Retirement income products compared
Flexible income for life | Lump sum and a flexible drawdown income | Guaranteed income for a set period | Guaranteed income ending with a lump sum | |
---|---|---|---|---|
Choice of guaranteed monthly income | ||||
Income guaranteed for life | ||||
Can change monthly income | ||||
No exposure to market risk | ||||
Retirement income calculator
It’s simple to use, and provides a helpful estimate of your potential income in retirement. How much could you get?
Not sure if a fixed term plan is right for you?
Expert advice can give you peace of mind that you’re making the most of your money. We will:
- Talk you through all of your pension options, including annuities.
- Research products from different providers and offer recommendations.
- Help prepare your retirement finances so you can retire with ease.
Take the first step to your ideal retirement today.
0800 009 4011
Lines open Monday to Friday 9am to 5pm
We may record and monitor calls.

Eligibility
Which fixed term plan's best for you?
To choose between them, you just need to decide whether or not you want a lump sum payout when your plan ends.
Common fixed term plan questions
You’ll see that in some of the questions below we describe fixed term plans as fixed term annuities. Strictly speaking fixed term plans aren’t annuities. That’s why we never describe our own versions of this kind of product as annuities. But many people call this kind of product fixed term annuities, so we’ve reflected that in our questions here.
Yes they are the same thing. They both are designed to provide a guaranteed income with an optional lump at the end. The reason why these plans are not called 'fixed term annuities' is because they're written under flexi-access drawdown rules, which allows some flexibility in how they can be used.
Guidance helps you to identify and narrow down your choices in an impartial way. It won’t tell you what’s right for you but will explain your options and provide information so that you can choose what you want to do.
Advice considers your personal and financial circumstances and recommends specific products or actions to be taken that helps you achieve your goals. Your first conversation with an adviser will probably be free. But it’s important to check and confirm that, and also understand when and how you will start paying for any advice.
From 1 June 2022, the Financial Conduct Authority now requires pensions providers to refer customers to Pension Wise guidance and explain the nature and purpose of this guidance, when they decide to access their pension savings.
Pension Wise from MoneyHelper is a free and impartial Government pension guidance service.
Your decision about which options to choose is likely to be influenced by many factors, such as how much income or cash you need now and in the future. You should also consider your personal circumstances and the impact that your choices may have on taxation, State Benefits, Annual Allowances and any dependants.
You can either buy this directly through us or through a financial adviser. We recommend always shopping around and getting guidance or advice when you’re buying one. That’s because once you’ve bought it, you usually won’t be able to make any changes to it. So it’s very important to be sure that you’re making the right choices for you.
Different providers offer a range of different fixed term retirement income products and product options. In general, key decisions will probably include how long your product runs for, whether your payments increase over time, whether or not you get a lump sum payment when your product ends and what happens to your product if you die before its term ends.
The income from our Cash-Out Retirement Plan will stop once the final payment is made. For our Fixed Term Retirement Plan, you will need to decide what to do with your lump sum.
That depends on what the markets are doing and what a particular provider is offering. The best way to find out is to shop around for the best rate, which we always recommend doing.
That depends on your financial goals and circumstances. If you want the security of guaranteed payments for a period of your choosing, this kind of product could be a good choice for you.
Once you’ve bought this kind of product, you usually can’t make any changes to it. Any income from it will be taxable and could effect your eligibility for any state benefits you’re getting. If inflation is high, you might find that your regular payments are worth less in real terms. And once your product ends, that’s it. You’ll need to make plans to replace any income from it.
You can usually only buy this kind of product when you’re aged between 55 and 85. If you can buy one, your personal goals and financial circumstances will be more important than your age.
Fixed term plan articles

What are fixed term annuities?
A fixed term annuity pays a guaranteed retirement income for a specific period of time. We help you understand whether a fixed annuity is right for you.
Need some help?
Making well-informed decisions about how to finance your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy:

Retirement guidance
Pension Wise from MoneyHelper
The government’s free and impartial service, offering guidance to make money and pension choices clearer for over 50s.
To find out more or book an appointment online click below or call.
0800 011 3797
Monday to Friday, 9am to 5pm.
Calls may be recorded and monitored.

Retirement advice
Retirement Advice Service from Legal & General
Our advisers are experts in retirement regulated by the Financial Conduct Authority, so you can trust them to provide impartial advice and a personal recommendation that’s right for you.
0808 304 9155
Monday to Friday 9am and 5pm.
Calls may be monitored and recorded.

Speak with us
Our colleagues in Cardiff are always happy to answer your questions.
0800 048 2446
Monday to Friday 9am to 5pm.
Calls may be monitored and recorded.