- Canada Life reports a 123% rise in Fixed Term Income Plan (FTIP) sales in H1 2026 compared to H1 2025.
New half year figures from Canada Life show a significant rise in demand for one of the retirement income market’s lesser-known options. Sales of Canada Life’s Fixed Term Income Plan (FTIP) increased by 123% in H1 2026 compared with H1 20251.
For retirees who may not be ready to commit to a lifetime annuity just yet, or don't want to take investment risk in drawdown, FTIPs are emerging as a popular alternative. They provide the same income security as an annuity but for a shorter, set period – with the added benefit of an optional lump sum paid at the end of the term (known as the Guaranteed Maturity Value).
As an illustration, based on a quote produced by Canada Life, £100,000 invested over a 10-year term could provide a guaranteed income of £5,417 a year and still return the full £100,000 at the end of the term2.
Nick Flynn, Retirement Income Director, Canada Life explains the rising appeal for FTIPs:
"As the cost of government borrowing has risen along with interest rates, annuity rates have hit record highs in recent years. Fixed Term Income Plans (FTIPs) have benefitted from this same rate environment and are gaining popularity as retirees look for increasingly flexible ways to manage their pension income.
“An FTIP is a straightforward way to turn some or all of your pension into a income over a fixed period. When you set up your plan, you have the flexibility to choose whether to take a regular income, a lump sum at the end (known as the Guaranteed Maturity Value) or a combination of both.
"You choose how long the plan runs, typically 1–20 years. From day one you know exactly how much income you will receive and (if selected at the outset) exactly how much the Guaranteed Maturity Value will be at the end of the term.
“The Guaranteed Maturity Value can be used in whichever way best suits your circumstances in retirement. You can withdraw it as a cash lump sum, set up another FTIP or drawdown policy, or purchase a lifetime annuity.
"FTIPs are resonating with retirees because they solve real challenges, helping retirees 'buy time' before committing to n or purchasing a lifetime annuity. Customers are choosing the product to bridge the gap to State Pension or defined benefit pension start dates, help fund specific commitments such as mortgage payments or school fees, or stabilise income in the earlier years of retirement.
"FTIPs are designed to provide a steady income over a set timeframe, whilst retaining the future flexibility to choose the product that best suits your needs at the end of the term."
Nick explains the importance of shopping around.
“Shopping around ensures you get the most out of your hard-earned savings. Never simply accept the offer from your existing pension provider, as you may not always get the best deal.
“The difference between the highest and lowest Fixed Term Income Plan quote is over £1,060 a year, equating to more than £10,600 during a 10-year term3.
"A Fixed Term Income Plan may not be right for everyone, and seeking help from a specialist broker or advice from an adviser should always be part of any buying process.”
How to decide if a Fixed Term Income Plan is right for you:
- You have pension savings of at least £10,000 to invest (after taking tax-free cash)
- You want the option to take guaranteed income for a selected term of between 1 to 30 years.
- You want to know exactly how much you’ll get back at the end of the term.
- You do not want to take any investment risk
- You can afford to tie your money up for the chosen term of your Fixed Term Income Plan.
-ENDS-
Notes to editors
- Canada Life data comparing Sum of Premium of Issued Policies for Fixed Term Income Plan products between H1 2025 and H1 2026.
- Canada Life quote as of 31/07/2026 for a 10-year term based on a 65-year-old with no health and lifestyle factors in a mid-range postcode, purchase price £100,000, with a guaranteed maturity value of £100,000.
- Canada Life quote as of 31/07/2026 for a 10-year term based on a 65-year-old with no health and lifestyle factors in a mid-range postcode, purchase price £100,000, with a guaranteed maturity value of £100,000. In this example, the annual income difference between the best and worst quote is £1,063. Over 10 years this equates to a £10,630 difference in income.
Enquiries:
Press enquiries should be directed to:
Katie Ormrod, Canada Life, +44 7834 740227, katie.ormrod@canadalife.co.uk
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited (no.3846821), Canada Life Limited and Canada Life European Real Estate Limited (no.03846823). Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.
www.canadalifeassetmanagement.co.uk