Please note the M&G funds are priced as at 06/12/18 and will be updated on the 11/12/18 due to no price being issued.
We have rebranded Retirement Advantage products as Canada Life. Visit our Retirement Account and Home Finance pages.
Please be aware the Canada Life International offices will be closed from 9am Monday 24th December, re-opening at 9am on Thursday 27th December. Then closing from 9am on Monday 31st December and re-opening at 9am on Wednesday 2nd January 2019.

Drawdown retirement plan

The Retirement Account - Jeremy

 

A retirement solution

Jeremy is 65 years old and has built up a £90,000 pension fund (after tax-free cash of 25%). He’s had issues with his health over the last few years, so is keen to retire. He picks up a State Pension but aside from that this is his only source of income.
His number one objective is to ensure that he generates enough regular income to see him through his retirement. In addition he would like a small amount of his savings to be accessible and would like to make sure his children end up with something should he die.

His financial adviser suggests that Jeremy takes out a Retirement Account and using his £90,000 investment he:

  • buys a Guaranteed Annuity with £75,000 of his investment. This provides him with just over £4,500 a year of secure lifetime income. The income provided was improved as a result of his health problems.
  • uses the remaining £15,000 to invest in Pension Drawdown. His adviser helps him select a balanced fund, which invests in equities and other financial investments. He has complete freedom to dip into this investment whenever he wants.

Jeremy sets up a 30-year guarantee on his Guaranteed Annuity. This would pay his beneficiaries an ongoing income after his death. So for example if he died after receiving 5 years of payments then the income would continue for another 25 years, or a lump sum could be paid immediately.

The money in Pension Drawdown could be paid as a lump sum on his death.

Jeremy case study graphic

 

Examples are for illustrative purposes only

Find out more about The Retirement Account

 

 

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 by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.