We have rebranded Retirement Advantage products as Canada Life. Visit our Retirement Account and Home Finance pages.

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The Retirement Account - Rebecca

 

A retirement solution

Rebecca is aged 65, married, with a £150,000 personal pension fund.

Rebecca receives pension income of around £17,500 from the State Pension and an ex employer’s final salary scheme.

She would like £2,500 a year guaranteed income (£20,000 in total) to pay for life’s essentials and an extra £3,000 income on top to help with holidays and nice to haves.

Her financial adviser suggests that Rebecca takes out a Retirement Account and using her £150,000 investment she:

  • buys a Guaranteed Annuity with £55,000 of her investment. This provides her with the extra £2,500 a year of secure lifetime income.
  • uses the remaining £95,000 to invest in Pension Drawdown taking £3,000 income. With her adviser she chooses an investment fund that suits her conservative attitude to risk. She hopes that her Pension Drawdown funds will grow over time.

Her adviser explains that The Retirement Account is flexible enough to deal with changing circumstances in retirement. Her husband will give up work in the next few years and has very little in the way of pension savings so she may want to consider using more of her Pension Drawdown fund to secure additional Guaranteed income at that point.

Finally she agreed to set up death benefits which would provide an income guarantee should she die earlier than she hopes!

Rebecca 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.