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.

Here’s everything you need to know about our Fixed Term Income Plan ­– key features, how it works, helpful links, guides and brochures.


You must be:

  • At least 55 years old
  • Live in the UK
  • Have at least £10,000 of pension savings held in a UK registered pension scheme after taking tax-free cash


Our Fixed Term Income Plan is written under flexi-access drawdown rules. This means you can choose how much income you want to receive – although this must be set at outset. It will then guarantee an income for a set term. 


Our Fixed Term Income Plan aims to pay any combination of the benefits below that you choose at outset, over a specified term of 1-20 years:

  • A fixed regular income for the whole term, which can increase each year
  • A Guaranteed Maturity Value payable at the end of the fixed term, which then allows you to arrange another retirement product
  • A lump sum death benefit to your beneficiary(ies) if you die before the end of the specified term


Our Fixed Term Income Plan may be suitable if you:

  • Need access to your tax-free cash and want to invest the remaining pension savings for a fixed term without taking any investment risk
  • Don’t want to commit to a guaranteed income for life at this time
  • Want the certainty of a guaranteed income and/or a guaranteed return at the end of the term

Options at term end

Our Fixed Term Income Plan allows you to use your Guaranteed Maturity Value to either:

  • Take all your money as a cash lump sum. (This is taxable at your marginal income tax rate)
  • Buy another Fixed Term Income Plan (subject to minimum premium requirement)
  • Purchase a guaranteed annuity which provides an income for life
  • Transfer to another flexi-access drawdown plan

Tax on income

Your income is treated as earnings and is taxed under Pay As You Earn. The tax payable depends on your total income from all sources, as well as your personal allowance.

Death benefit

If you die before the end of the term, we’ll provide a guaranteed death benefit. This will be the original purchase price minus any income paid to you before tax, up to the date of your death, and any adviser charges you have instructed us to pay.

Tax on death

If you die before your 75th birthday, your beneficiary(ies) will receive a tax-free lump sum or tax-free income. If the total amount of all pension and annuity benefits (including this plan) exceeds £1,073,100 the payment will be taxed at the beneficiary's marginal income tax rate.

If you die from age 75 onwards, we’ll tax the payments at your beneficiary’s marginal rate of income tax.


We can pay any charges you incur from your financial adviser for advice or services from your pension money before it’s applied to the annuity.

What are the risks?

Our Fixed term Income Plan does not pay an income for life.

The Guaranteed Maturity Value at the end of the term may not be enough to provide you with the same level of income you might receive if you had bought a lifetime annuity instead.  

Taking any income from the Fixed Term Income Plan, in addition to your tax-free cash, will trigger the Money Purchase Annual Allowance. This reduces the amount you can pay into a defined contributions pension scheme to £10,000.

Any references to taxation are based on our current understanding of HMRC rules and regulations, which may change.

Approved on 07/05/2024.