Important Information
Please read below the important things you should know about the Protected Retirement Plan.
Important things you should know
- Once it starts you can't usually change the basis of your plan or cash it in at any time.
- To take our Protected Retirement Plan you must be aged 55 or over. Your dependant needs to be at least aged 40 when the plan starts if a dependant’s income is included.
- The term can be between 3 and 25 years.
- There is no maximum age for buying our Protected Retirement Plan.
- The minimum investment is £10,000 (after any tax-free cash has been taken).
- We only accept funds from registered pension schemes - you can invest part or your entire pension fund in a Protected Retirement Plan.
- You can choose to take a level income, an increasing income (up to 8.5% a year) or no income at all. If you choose a level income, or an income that increases each year less than inflation, your income may not keep up with rising prices.
- You can choose to receive your income monthly, quarterly, half-yearly or yearly. 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).
- If you choose capped drawdown we may have to reduce your income and any dependant’s income because of applying the GAD maximum income limit. If we do this we'll pay the difference between the full income and the restricted income, plus interest, when the plan ends. If you choose flexible drawdown the maximum income limit doesn't apply.
- How much tax you pay depends on your personal circumstances. For details of how your plan will be taxed, please see the key features document. Ask your financial adviser for a copy of this.
- Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change. If the Government changes the tax treatment of this plan the income paid to you may fall.
Have a look at the main features of our Protected Retirement Plan.
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