Fixed Term Income Plan

What is the Fixed Term Income Plan?

The Fixed Term Income Plan (FTIP) is a fixed term annuity that provides three distinct guarantees:

  1. Guaranteed income
  2. Guaranteed Maturity value
  3. Guaranteed Death benefit

Because FTIP is written under drawdown rules it is flexible in that your client has control of how much income or guaranteed maturity value they take over their chosen term. Once set up, the terms are fixed and the plan cannot be changed until maturity. Terms start from 1 year to a maximum of 20 years.

Minimum investment of £10,000 (after tax-free cash and any adviser fee)

  • Term 1 to 20 years
  • Choice of level or escalating income options
  • Income can be taken monthly, quarterly, half yearly or annually
  • Income options with or without a GMV
  • GMV option with no income
  • A guaranteed death benefit automatically included
  • Initial adviser charges can be facilitated

FTIP does not pay an income for life and where a GMV is selected this may not be enough to provide your client with the same level of income or sufficient funds to purchase another FTIP. 

The Fixed Term Income Plan may be suitable for your client if:

  • They have pension savings that they want to crystallise equal to at least £10,000 after deduction of any tax free cash
  • They want to generate a guaranteed income, a guaranteed capital return or a combination of the two over a fixed period of 1 year or more
  • They understand that returns from the plan is fixed at the outset and cannot change
  • They can afford to tie the money up for their chosen term (They will not be able to cancel the plan after it is set up)
  • They want to use this money to provide a lump sum or income for their dependants in the event of their death

The Fixed Term Income Plan will not be appropriate if your client:

  • Has less than £10,000 to invest after taking their tax-free cash
  • Needs to have flexible access to their savings
  • They cannot commit to leaving the money invested for the fixed term

Alan: "I just want a secure income for a few years before I reassess my options when my state pension is available"
Taking tax-free cash from your pot now and investing in the Fixed Term Income Plan

Janet: "I just want to take my whole pension now without paying too much tax"
Taking your whole pension fund as a series of income payments

John: “I just need a fixed term income for a few years”
Taking your tax-free cash, and a fixed term income

Sandra: "I need a guaranteed income, but not for life"
Taking your tax-free cash and a fixed term income

Interested in More? Why not Look At...

Lifetime Annuities & Scheme Pension

For clients who want to take their pension as a guaranteed long-term income.


This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised and regulated by the Financial Conduct Authority.