Fixed Term Retirement Plan
Our Fixed Term Retirement Plan is a fixed term contract that will pay you a defined regular income over a term of between 3 and 25 years, with a fixed lump sum payable at the end of the term.
To apply you must be aged between 55 and 85 and have at least £10,000 to invest after you've taken any tax-free cash you might want to withdraw.
What are the options?
Our Fixed Term Retirement Plan can be tailored to your needs. The options you choose will determine your income.
|Tax-free cash||You can take up to 25% of your pension pot as a tax-free cash sum. If you don't take it at the start of your plan, you won't be able to take it later.|
|Amount of income or term of your plan||Choose how much income you want, how often it's paid, and the lump sum at the end of your plan term. Choosing a higher income will reduce the lump sum, choosing a lower income will increase the lump sum. You can choose to receive no income at all with just a lump sum at the end of your plan term. Once you've decided and started your plan, you won't be able to change these amounts.|
|Partial withdrawals||If you take out a guaranteed payment period that matches the term of your plan, then you can make up to three withdrawals against the lump sum payable at the end of the term. This will be subject to a fee and means your lump sum will be recalculated. This doesn’t have an impact on your fixed income. If you have taken out a guaranteed payment period that matches the term of the plan, then you will also have the option to cash in or transfer your plan.|
|Death benefits||Choose if you would like our income and lump sum value to be paid to a nominated beneficiary if you die before your plan ends.|
How does it work?
You choose the amount that you'd like to contribute from your pension pot or existing plan into a Fixed Term Retirement Plan.
You decide on the term (the time period that the plan will last for), the level of fixed income you receive and how often you receive it. You can decide to include any death benefits. For example, a guaranteed minimum payment period during which the income and maturity amount will continue to be paid to your beneficiaries if you die before the end of the term.
If you choose a guaranteed payment period, that matches the term of your plan, you can make up to three withdrawals at any time. This is subject to a minimum withdrawal of £5,000 each time. Choosing to make a withdrawal won’t have any impact on your regular income payments as we will deduct the withdrawal amount, administration and dealing costs from the maturity value only.
For details of the actual amount you could receive, get a quote online.
Is it suitable for me?
It may be suitable for you if:
It may not be suitable for you if:
Example Fixed Term Retirement Plan
Katherine is 55 and would like to top up her existing income.
She has a pension pot of £50,000 and wants an income over 5 years.
She decides to pay into a Fixed Term Retirement Plan. This plan will give her a regular income each year, and a fixed amount on maturity which Katherine can choose to use as she wishes.
The total amount due to be paid, over the full term of the plan, before income tax is:
The income and maturity amount will continue to be paid to her beneficiary if she dies before the end of the term.
These are example figures only. For details of the actual amount you could receive, get a quote online.
Important things to consider
- You can't make any changes to the plan once it's started.
- If your circumstances change during the term of the plan, you may be able to cash it in or transfer to another scheme.
- You can choose to make up to three withdrawals at any time during the term of your plan, which are subject to a minimum withdrawal of £5,000 each time. Choosing to make a withdrawal won’t have any impact on your regular income payments as we will deduct the withdrawal amount, administration and dealing costs from the maturity value only.
- As you'll receive a fixed income and maturity value, inflation will reduce the buying power of your income over time.
- Plan payments are considered as income, and subject to income tax. This could affect any benefits you claim.
- The tax you pay on the income from the plan will depend on your individual circumstances and can change. This may affect the income you receive from us.
- At the end of your plan income will stop.
- You may be able to get a higher amount of income through a product that assesses your health and offers higher returns for certain lifestyle and medical conditions.
- At the end of your plan your income will stop and you'll need to decide what to do with your maturity value. Find out about your maturity options.
Frequently asked questions
How can I buy a Fixed Term Retirement Plan?
What happens at the end of my plan?
When the plan reaches its end date, no further income payments will be made. We’ll write to you confirming that your plan has ended. You’ll then need to decide what to do with your maturity value - we’ll continue to hold it until you contact us. Before you decide what to do we recommend you seek guidance and financial advice. This is an important decision and you must consider all of your options. Find out more about what to do with your maturity value.
If you feel you need help, we strongly recommend you seek guidance or financial advice.
Ready to find out more?
You may choose to work through all the product sections below.
Or take a look at
Our Retirement Income Calculator allows you to quickly see what income you might expect from our range of retirement solutions.
Ready to get a quote?
You can get a quote online for any of our retirement products.