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

Fixed Term Annuity

Don't want to use your pension fund to buy an annuity immediately on retirement?

  • Get a fixed income for a specified period during your retirement
  • Choose your term and income with a guaranteed maturity value
  • At the end of the period, decide what your retirement needs are
Retired couple walking and smiling holding surfboards and wearing wet suits

What's the right plan for you?

If you like the idea of receiving a guaranteed income and having control over your pension fund, our Fixed Term Annuity offers you more flexibility and access to your money.

You'll have control over your plan and choice over what benefits you want to receive.

Choice of income and term

If you chose 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 amount of income you'll receive depends 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 your 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 your Protected Retirement Plan.

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.

This 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

If you die during the chosen term, your plan will end and no further income will be paid unless you add death benefits at the start of your plan.

If you live to the end of the plan, we'll pay the guaranteed maturity value and you can use this to buy another Fixed Term Annuity, Lifetime Annuity, transfer to a Drawdown Pension or take some or all of the value as a taxable lump sum.

Guaranteed income and guaranteed lump sum

You can take a regular income for a fixed term from your plan and receive a lump sum when the plan ends.

  • The income and lump sum are guaranteed.
  • You'll know exactly what you'll get back and when.
  • 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 your Protected Retirement Plan.

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 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 Protected Retirement Plan is available on its own or as part of our blended solution, the LV= Retirement Account. This allows you to combine multiple products into a single plan, which can be tailored to meet your retirement needs.

    The blended solution is becoming 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

    Please discuss your options with your financial adviser to choose the right product(s) to meet your needs in retirement.’

Death benefits

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 here.

Case studies

To illustrate the different features of our Protected Retirement Plan, we have a range of scenarios so you can see how our plan can work for people like you.

Read our case studies in more detail here.

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.

Speak to an adviser to discuss your needs

You can phone us
Call our UK-based advisers for more information or a quote

Phone icon

0800 756 8083
Quoting offer code IELO

TextDirect: 18001 0800 756 8083

8.30am - 6pm Monday to Friday

Existing customer?

If you're a Financial Adviser please call:
0800 169 1111
TextDirect: 18001 0800 169 1111

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

Love Retirement

Take a look through our articles full of helpful ideas and inspiration to help you enjoy a happy retirement.

Why choose LV=

  • Award-winning products
  • UK's largest friendly society

Policy documents

  • Key features
  • Terms and conditions

Professional advice

Speak to one of the our advisers to find out more about our Fixed Term Annuity.