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Protected retirement plan

Call us for a free chat on 0800 756 8083

Lines open: 8.30am to 6pm Monday to Friday

Short term annuities tailored to you

Buying a fixed term annuity with us could give you the flexibility to retire without committing to a lifetime annuity; we call it our Protected Retirement Plan.

The Protected Retirement Plan gives you the freedom to take an income for a fixed term, and transfer out to another retirement product when you’re ready, or use the guaranteed maturity value to review your circumstances and the options available.

You can choose either flexi-access drawdown where you can decide on the level of income, or a capped drawdown plan where the maximum income level is set by the Government. Capped drawdown is only available if you've already got a capped arrangement which you're transferring in.

Find out about your options with a Protected Retirement Plan.

Plan advantages

  • Secure, regular income set at an appropriate level for your personal circumstances
  • Gives you the time to make those really important retirement decisions before committing to a more permanent solution
  • Can provide fund protection
  • Gives you a guaranteed maturity value, so you know what you'll get back at the end of the term

When the plan ends

  • Receive a higher income from an enhanced annuity if your health has deteriorated
  • Delay locking into a lifetime annuity if your circumstances are likely to change
  • Lifetime annuity rates could improve in the future
  • New products might emerge that are better suited to your needs

Plan disadvantages

  • If you cash in your fixed term annuity before the end of the term you may get back significantly less than the guarantees maturity value, or even the amount you invested
  • If you take a bigger income now, there will be a reduced guaranteed maturity value at the end of the plan to buy another retirement solution with

When the plan ends

  • Lifetime annuity rates could have worsened
  • Changes in legislation or tax rules could be disadvantageous
  • Potentially better investment returns available elsewhere.

How our protected retirement plan works

Video transcript

Meet Grace, she's 60. She’s worked as an independent hairdresser most of her working life. She's passionate about her job and loves keeping up with her clients but is keen to reduce her hours as she’s gets older.

Unfortunately over the last few years Grace has overspent on credits cards and accrued a rather large debt. The only form of savings she has is her pension pot of £60,000.

She’s decided to take all of her 25% tax-free entitlement to totally clear her debts. Grace will use another chunk of her pension pot to provide a fixed income for five years.

On top of part-time earnings this will bridge the gap until her state pension is due to pay out and she stops working completely. She can then reassess her options and decide what to do with the rest of her pension savings.

That’s Grace’s story. If this is something you'd like to explore, talk to an adviser or get your online advice report today.

Product features

  • 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).
  • To take out a fixed term annuity you must be aged 55 or over. Your beneficiary needs to be at least aged 40 when the plan starts if a beneficiary's income is included. The term can be between 3 and 25 years.
  • 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 the 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).
  • The conversion option allows you to transfer out to another retirement product or take taxable cash at any time. The value may be considerably less than the guaranteed maturity value especially in the early years or if investment returns are less than expected.
  • At the start of the plan you can choose an income for a specified period as well as a choice of death benefits. A guaranteed maturity value, which is a lump sum payment, will be paid at the end of the chosen length of the plan, unless you drain your invested fund over the term

Important information

  • We only accept funds from registered pension schemes - you can invest part or your entire pension fund in a Protected Retirement Plan
  • If you transfer in and continue with a capped drawdown plan we may have to reduce your income and any beneficiary's income because of applying the Government Actuary’s Department 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 flexi-access 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
  • Any references we make to taxation are based on our understanding of current legislation and HM Revenue and Customs practice, which can change. If the government changes the tax treatment of this plan, the income paid to you may fall.
  • By taking funds across the term of your plan, the guaranteed maturity value may not provide the income you need after this plan has ended.

Liverpool Victoria Financial Advice Services Limited (LVFAS), a wholly owned subsidiary of Liverpool Victoria Friendly Society limited offer a range of protection, pension and investment products from the Liverpool Victoria group of companies. LVFAS also offer investments from a limited number of other companies and annuities from the whole of the market.

Have a commitment free chat with a Pension Specialist

Call us on 0800 756 8083

TextDirect: First dial 18001

Lines open: 8.30am to 6pm Monday to Friday. We may record and/or monitor calls for training and audit purposes.

Start your conversation with a pension specialist today by telling us about:

  • Your current pension pots
  • Any contributions you're making
  • How much you've already saved