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Fixed term annuity options

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0800 032 9301

Lines open: 8.30am to 6pm Monday to Friday

Flexible options with a Protected Retirement Plan

If you like the idea of receiving a guaranteed income and having control over your pension fund, our fixed term annuity offers you flexible access to your money.

Take control over your plan and choose which benefits you want to receive.

Choice of income and term

If you choose flexi-access drawdown you can take whatever regular income you would like, as long as it doesn't empty your plan before the maturity date. If you transfer in and continue with a capped drawdown arrangement, Government Actuary's Department (GAD) limits may restrict your income. If this happens, we'll pay the difference when the plan ends.

Guaranteed income

If you choose to invest your pension fund to provide a secure income, this will guarantee a level of income for a fixed term which can be used for efficient tax planning. The guaranteed income you receive will depend on:

  • the size of the pension fund you invest
  • the plan term
  • whether you choose your income to stay the same or increase each year by up to 8.5%
  • how often you choose you income to be paid

If you die during the chosen term, your plan will end and no further income or lump sum will be paid unless you add death benefits for income and guaranteed maturity value protection when buying our fixed term annuity. You can combine a guaranteed income with a guaranteed lump sum to give you more security.

Guaranteed lump sum

You can invest your pension fund over a fixed term. We guarantee the amount we’ll pay at the end of the term, so you'll know exactly what you’ll get back regardless of market conditions. The guaranteed lump sum value offered will depend on:

  • the size of your invested pension fund
  • the plan term
  • your age
  • how much income you choose
  • any death benefits you include
  • our views about investment markets

At the end of your plan term, we'll pay the guaranteed maturity value and you can use this to buy another fixed term annuity, or explore your other retirement options like a lifetime annuity, transferring your pension to a drawdown or taking some or all of the value as a taxable lump sum.

You can combine a guaranteed lump sum with a guaranteed income to give you more security.

Death benefits

If you die during the chosen term, your plan will end and no further income or lump sum will be paid unless you add death benefits for income and/or guaranteed maturity value protection when buying a fixed term annuity.

You can choose the level of benefits that we'll pay if you pass away before the end of the plan. To help you decide what benefits are right for you, read more about our optional death benefits.

Conversion feature

Our conversion feature gives you the flexibility to change your mind. You can end your plan early and convert to any other retirement product or take it as taxable cash. You don't have to wait until the plan ends if you don't want too, you can do it at any time.

This feature is automatically included, so there's no extra charge and no need to opt in. The value may be significantly less than the guaranteed maturity value, or even the original investment, if you use the conversion feature in the early years or if investment conditions worsen.

Blended solution

The rules around pensions changed radically in April 2015 and the range of options available to people approaching or in retirement is now broader, with greater freedom over how and when to use your pension savings.

Our fixed term annuity is available on its own or as part of a blended solution, which allows you to combine multiple pension products into a single plan that is tailored to meet your retirement needs. The blended solution is becoming an increasingly popular as a way to achieve the perfect balance of security and flexibility. This solution allows you to leave your pension fund to grow, providing you with a secure income for a fixed term

Plan information

You should read the following documents on our Protected Retirement Plan before applying. However the information in these documents shouldn't be considered as advice to take out the plan. It's up to you to decide if the plan is right for you and if you're unsure, you should speak to a financial adviser.

Have a commitment free chat with a Pension Specialist

Call us on 0800 032 9301

TextDirect: First dial 18001

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