At a glance
- Offers a lifetime income that is linked to a choice of investment funds, giving the potential for a growing income
- Provides a guaranteed minimum income level that your income will never fall below
- Income reviews conducted every three years to assess fund performance and adjust income levels (Income reviews also available on request)
- Options to provide benefits to your spouse, civil partner or beneficiaries upon death
Key features
Guaranteed income
Your Flexible Income Annuity includes a Minimum Income Guarantee, ensuring your income will never fall below a set amount, even if investment performance is poor.
Investment choice
You can invest in a range of risk-rated funds designed to offer growth potential. Fund performance can impact your income levels, reviewed every three years.
Income flexibility
If your funds perform well, your income may increase. If performance is below expectations, your income can reduce—but never below the Minimum Income Guarantee
Flexibility and choice
When you reach age 90, we will convert your income to a fixed income for the rest of your life, so your income will no longer be subject to market fluctuations. You can choose to switch to a fixed lifetime income at any stage before then.
Options at setup
Death benefits
You could have chosen from:
- Joint life : Income continues for your spouse or civil partner after your death
- Guaranteed period : Income paid for a set period, even if you pass away during that time
- Value protection : Residual fund returned to your estate if you die before age 75
Tax treatment of benefits
- Under age 75 at death: Payments to beneficiaries are tax-free within HMRC limits
- Age 75 or over at death: Payments are subject to income tax at the beneficiary’s marginal rate
Policy and fund charges
- Policy charges cover administration and the cost of providing your Minimum Income Guarantee
- Fund charges vary by investment choice—details are provided in your investment documentation
Important considerations
- Once set up, your annuity cannot be cashed in, transferred to another product, or used as loan security
- Income may fluctuate with investment performance but cannot fall below your Minimum Income Guarantee
- Taking a higher level of income early reduces potential for future income growth
- Inflation may reduce the spending power of your income over time
- The annuity stops paying when you pass away unless you have chosen specific death benefit options