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Protected Retirement Plan

Income options

When we pay the income

We can pay your client's annuity income:

  • Every month
  • Every three months
  • Every six months
  • Every year

We can either pay the first income payment as soon as we receive the money for the policy (in advance), or at the end of the first payment period (in arrears).

Level income

  • Your client can choose to have their income stay the same throughout the term of their annuity.
  • This option will provide a higher starting income than an increasing income.
  • However if your client chooses a level income, it won’t keep pace with inflation and it’s buying power will reduce in the future.

Increasing income

  1. Your client can choose for their income to increase each year by a fixed percentage, for example by 3%.
  2. The maximum you can choose is 8.5%.
  3. This option will provide a lower starting income but the income we pay will increase each year on the income review date.
    1. The first income review date is normally the anniversary of the date we start paying your client’s income.
    2. If they’ve already taken benefits from the pension fund they’re transferring, your client’s first income review date is the anniversary of when their maximum income level was last reviewed.

Default income

If your client chooses this option, we’ll calculate an income level which aims to provide a guaranteed maturity value that if used to purchase a lifetime annuity, would provide an income to a similar level to that paid in this plan.

  • We’ll calculate this using our current annuity rates and will take into account any options your client has selected on this plan – such as death benefits or an increasing income.

No income

  • Your client can choose not to receive any income at all.
  • In this case, we won't pay out anything unless they're still alive at the maturity date.
  • If your client dies before the end of the plan and they've chosen a lump sum death benefit, we'll pay this instead.

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