information

We use cookies to give you the best possible experience online. By continuing to use our website, you agree to receiving our cookies on your web browser. Visit our cookie policy page to find out more and how to change your cookie settings.

skip to main content

Provides a secure income over a set term, with a guaranteed value at maturity

Protected Retirement Plan

Fixed Term Annuities FAQs

Can my client transfer their plan?

Yes. Our conversion option allows your client to end their existing plan and transfer out at any time. So they won’t have to wait until their plan is due to end if they don’t want to. They can transfer out to another retirement product, or take as taxable cash, at any time, for any reason

All customers automatically qualify for this feature when they take out a fixed-term annuity with us, so there’s no need to opt in and there’s no extra charge.

What is the maximum income my client can take from their plan?

All new pension funds being invested into a fixed term annuity are set up under flexi-access drawdown, which means there’s no limit to the amount of income available from the plan. The max income your client receives will depend on:

  • The amount they invest in the plan
  • The plan term they choose, and
  • The lump sum they want to receive when their plan ends (if they want one).

If your client already has a capped drawdown fund, which they want to transfer into a capped drawdown fixed term annuity, we may have to restrict a client’s chosen income, or their beneficiary’s income, as a result of applying limits set by law and the Government Actuary’s Dependant (GAD).

The limit is based on an individual’s age, pension fund size and the annuity rates set by GAD. At each income review date we have to review the client’s income, or their beneficiary’s income, to make sure we don't pay more than 150% of the GAD limit (which we call the ‘GAD maximum’). Also, at each GAD review date, which is normally every 3 years until your client reaches age 75 and yearly thereafter, we have to calculate a new GAD maximum.

Can my client hold their fixed term annuity within a SIPP?

Yes, we offer a trustee version of our fixed term annuity, which can be held within a SIPP (this can be the LV= Flexible Transitions Account or an external SIPP). The fixed term annuity will pay any income into the SIPP bank account, giving your client greater control and flexibility over their income. Some of the options available under the trustee version of the plan are different from those we offer for the standalone version, so please refer to the trustee Key Features and Plan Conditions documents for more information.

08000 850 250

TextDirect: first dial 18001

8.30am - 5.30pm Monday - Friday

We may record and/or monitor calls for training and audit purposes.

Literature

Customers

Graph icon

LV= Retirement Pathfinder

A free and impartial retirement modelling tool to help you and your clients create, view and analyse different retirement scenarios.

More about Pathfinder

Money icon

Blended Solutions

The retirement landscape has fundamentally changed for the better, giving customers more choice and control over their retirement income.

More on Blended Solutions

LV= icon

Retirement Hopscotch

Hopscotch is the effective way for you to guide your clients through the maze of retirement options they face, making it easier to structure retirement income.

More about Hopscotch

Heart icon

LV= Retirement Account

The easy way for professional advisers to recommend and deliver a wide combination of LV= retirement income products in one simple account

More on the LV= Retirement Account

Connect with us

About retirement

Vimeo logoLinkedIn company logoTwitter icon showing a bluebird

FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK