Fixed Term Income Plan

Keeping your options open when planning your retirement

If a guaranteed lifetime income is a commitment you are not yet ready to make but you need guaranteed benefits now, The CanRetire Fixed Term Income Plan (FTIP) may be a suitable solution. FTIP allows you take your tax free cash up front and use the remaining funds to purchase either a guaranteed income, a guaranteed lump sum, known as a guaranteed maturity value (GMV) or a mix of both over a specified term.

Your professional adviser can help you choose the most suitable option.

• Access all your tax-free cash entitlement at the start
• Choose to invest your pension savings to provide a guaranteed income, a GMV or a combination of the two.
• Choose the level of income you want to receive at the outset of the plan
• Choose a suitable term (between 1-20 years)
• Choose to have a Guaranteed Maturity Value (GMV) paid to you at the end of the term.
• Reassess your options at the end of the plan term.

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

FTIP is a fixed term contract and cannot be revised or cancelled after it has started (except within the normal cancellation notice period).

The FTIP lets you access your tax-free cash while giving you a level of certainty knowing from the start the benefits selected are guaranteed for the duration of the selected term. You can choose to have a level income or fixed escalation between 0.1% and 10%.  You can also choose to have your income paid monthly, quarterly, half-yearly or annually.

The FTIP can also provide a death benefit in the form of a lump sum or beneficiary’s flexi-access drawdown.

The Fixed Term Income Plan may be suitable for you if:

• You have pension savings that you want to crystallise equal to at least £10,000 after deduction of any tax free cash
• You want to generate a guaranteed income, a guaranteed capital return or a combination of the two over a fixed period between 1 year and 20 years
• You understand that returns from your plan are fixed at the outset and cannot change.
• You can afford to tie the money up for your chosen term as you will not be able to cancel the plan after it is set up
• You want to use this money to provide a lump sum for your dependants in the event of your death.
• You can regularly review your plan in order to ensure it continues to meet your needs

The Fixed Term Income Plan will not be appropriate if:

• You have less than £10,000 to invest after you have taken your tax-free cash
• You want to withdraw all of your funds immediately in one go.
• You need to have flexible access to your savings
• You cannot commit to leaving your 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