At a glance
We've put the main features of our Protected Retirement Plan together in one handy place.
Minimum investment | The minimum investment is £10,000 (after any tax-free cash has been taken) There is no maximum limit but we will review any applications over £500,000 on an individual basis. |
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Income | Your clients can choose to take a level income, an increasing income (up to 8.5% a year), or no income at all. If your client chooses a level income, or an income that increases each year by less than inflation, their income may not keep up with rising prices. |
Acceptable Monies | Non protected rights and protected rights monies can be accepted into the plan. |
Income payment frequency |
The first income payment can be paid either as soon as the plan starts (known as in advance) or at the end of the payment period (known as in arrears). |
Dependant's income | Your clients can choose to provide their spouse, civil partner or financial dependant with an income if the client dies before the end of the plan term. If this option is selected, we’ll pay the surviving dependant an income, equal to the chosen percentage of the client's income, until either the end of the plan or when they die – whichever happens first. If the client is married or in a civil partnership when the plan is set up and the plan is set up using a protected rights pension fund, we’ll always include a dependant’s income equal to the client’s income. |
Minimum age | Your client must be age 55 or over when the plan starts. |
Maximum age | There is no maximum age. |
Term limits | The minimum plan term is 3 years, and the maximum is 25 years. |
Income | Your clients can choose their required income that (subject to GAD limits) will be guaranteed whilst they are alive for the plan term. There is no maximum income limit under a flexible drawdown as long as the selected income is sustainable throughout the chosen term. |
Guaranteed maturity value | The guaranteed maturity value is fixed at the start of the plan dependent on
It will be paid at the maturity date of the plan as long as your client is still alive. This can be used by your client to buy a lifetime annuity, another Protected Retirement Plan or transfer to drawdown pension arrangement to best fit their personal circumstances and income requirements. Clients in a flexible drawdown that have chosen a maturity value can take the guaranteed maturity value as a final income payment, subject to income tax. |
Investment methods | A plan can only be bought with pension savings
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Death benefits | Your clients can choose from a range of death benefits at the start of the plan including:
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Extras | We also have a Money Where Our Mouth Is commitment. This is our commitment to release tax free cash, where appropriate, within five working days of receiving the funds and all requirements - subject to terms and conditions. If we fail to meet this commitment, we will pay £1000 to your client as compensation or the inconvenience caused as a result of this failure. |
Related literature
For customers
For trustees