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 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 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. 

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 FTIP may be suitable, if you are aged 55 or over, with at least £10,000 to invest and you are looking for guaranteed income and or a GMV, without locking into an annuity for life.  

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