Fixed Term Income Plan

Also worth knowing

• How does it work?

  When you set up your plan, you can choose one of the following options:

  • How much income you want to receive, if any
  • A fixed or escalating income
  • The length of your fixed income term: from 1 to 20 years
  • To receive a guaranteed maturity value at the end of your chosen term

• What choices do I have at the end of my chosen term?

  At the end of your chosen term you can:

  • Withdraw your money as a cash lump sum
  • Buy another Fixed term Income Plan
  • Transfer your lump sum to a flexi-access drawdown plan, such as The Retirement Account
  • Purchase a guaranteed income for life, such as our Lifetime Annuity

• What tax will I pay?

  You can normally take up to 25% of your fund tax-free at the start if your money isn’t coming from an existing drawdown plan.

  During the plan term

  Your income will normally be subject to income tax at your marginal rate, assuming HMRC provide us with a tax code or you provide a P45.

   At the end of the plan term

  If you decide to take a lump sum, this will be subject to income tax at your highest marginal rate.

  If you decide to take out another Fixed Term Income Plan or transfer to a flexi-access drawdown plan, your income will be subject to tax at your highest marginal rate.

• What happens if I die?

  If you die before your 75^th birthday

  Your beneficiary(ies) will receive a lump sum equal to your initial investment, minus any payments made up to the date of your death. We’ll also make a tax-free refund for any adviser charges.

  If you die on or after your 75^th birthday

  Your beneficiary(ies) will receive a lump sum equal to your initial investment, minus any payments made up to the date of your death. We’ll refund adviser charges but it’ll be subject income tax at your beneficiary’s marginal rate.

  In both cases, your beneficiary(s) may have the option to either take the lump sum or to transfer it to a beneficiary(s) flexi-access drawdown.

• How do I apply for a Fixed Term Income Plan?

  You can transfer funds from a UK registered pension scheme. Unfortunately, we can’t accept applications from customers who want to use their open market option. You should speak with a financial adviser to see if our Fixed Term Income Plan is right for you.