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

Interested in More? Why not Look At...

Lifetime Annuities & Scheme Pension

A guaranteed income for life

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CanRetire Flexible Drawdown Plan

Prepare for retirement, with flexible access to your savings.

More

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.