When you set up your plan, you can choose one of the following options: <ul> <li>How much income you want to receive, if any</li> <li>A fixed or escalating income</li> <li>The length of your fixed income term: from 1 to 20 years</li> <li>To receive a guaranteed maturity value at the end of your chosen term</li> </ul>

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

At the end of your chosen term you can: <ul> <li>Withdraw your money as a cash lump sum</li> <li>Buy another Fixed term Income Plan</li> <li>Transfer your lump sum to a flexi-access drawdown plan, such as The Retirement Account</li> <li>Purchase a guaranteed income for life, such as our Lifetime Annuity</li> </ul>

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 75th 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, including any adviser charges you have asked us to pay. This will usually be paid free of tax. If you die on or after your 75th 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.

Fixed Term Income Plan

Plan ahead with confidence

Get a regular, guaranteed income between 1 to 20 years with our Fixed Term Income Plan. At the end of your term, you’ll receive a Guaranteed Maturity Value, which you can use for your retirement.

Is the Fixed Term Income Plan right for you?

Fixed, regular income between 1-20 years

Receive a Guaranteed Maturity Value at the end

Lump sum death benefit for beneficiaries

Reassess your retirement needs at the end of the term

What are the risks?

Whilst we guarantee the income you have chosen from the outset, this is not payable for life, only the term selected. We cannot predict what income the Guaranteed Maturity Value (if selected) would provide if used to purchase another retirement income product, such as a lifetime annuity. You have the right to change your mind within 30 days of the set up of your Fixed Term Income Plan. However, after that time you can’t change it or cash it in, even if your circumstances change.

This product may be right for you if:

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 20 years
You want to guarantee how much your plan is worth when the term ends
You do not want to take any investment risk and are happy for the return from your plan to be fixed at the start
You can afford to tie your money up for the chosen term
You want to provide a lump sum for your loved ones in the event of your death

This product will not be right for you if:

You have less than £10,000 to invest (after taking tax-free cash)
You want flexible access to your pension savings
You want to withdraw all of your funds immediately in one go
You can’t commit to leaving your money invested for the chosen term
You want your income to be guaranteed for life
Read more about the Fixed Term Income Plan in
the Fixed term income plan key features

Fund Centre

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Need an adviser?

Get a tailored quote for this product from a financial adviser. To find one, visit Unbiased.

Frequently asked questions

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
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
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.
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, including any adviser charges you have asked us to pay. This will usually be paid free of tax.

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.