About Bob
Bob is nearly 65 and is planning to retire soon. His pension fund, after tax-free cash, is £300,000.
What are Bob’s objectives?
Bob is happy to invest £200,000 of his fund in drawdown to provide flexible income and the potential for growth. He doesn’t want a guaranteed annuity at this stage as his circumstances may change. Bob’s key priority with the remaining £100,000 is to guarantee a lump sum.
What does Bob get?
Bob’s adviser recommends investing the remaining £100,000 in a Fixed term Income Plan for 20 years. He doesn’t receive an income from this plan and is guaranteed that the value will be £172,696 in 20 years’ time. At the end of the term, he’ll be able to reassess his options once again.
Tax-free cash and the benefit of guaranteed growth
What are the risks?
We cannot predict how much income your Guaranteed Maturity value will provide at the end of the term.
Any references to taxation are based on our current understanding of HMRC rules and regulations which are subject to change. We recommend speaking to a professional adviser who can assist you to weigh up the options available to you. Together, you can take a good look at your immediate goals and long-term expectations in retirement.
