Guaranteed Fixed Term Income Plan

Easy to buy

• Clients can use funds from all UK registered pension schemes

Great choice

• Clients will receive their income monthly, in advance or in arrears
• There is a death benefit for the full term as standard for a surviving beneficiary
• Clients can choose to surrender the plan should their circumstances change
• Clients can choose a term of 3-25 years
• Clients can choose one of the following:  
  • A regular guaranteed income over a fixed term    
  • A regular guaranteed income over a fixed term with a guaranteed maturity value at the end  
  • A guaranteed maturity value at the end of a fixed term  

Extra value

• Sophisticated pricing ensures a personalised quote for every client
• Clients can guarantee income payments for a fixed term, with a death benefit being available should they die before the end of the term
• Clients can add a Guaranteed Maturity Value which is payable at the end of the fixed term

Age limits

The minimum age your clients can buy this plan is 55. It may be possible at a younger age if your client is retiring through ill health or the annuity is being bought for a dependant following the death of a member of a pension scheme.

The maximum age at the end of the fixed term is 90.

Term

Income can be paid for a fixed term between 3 and 25 years.

Payment limits

The minimum payment to set up a Guaranteed Fixed Term Income Plan is £10,000 after taking any tax-free cash sums and paying adviser charges. There is no maximum amount, but please contact us about any plans valued over £1 million.

Product charges

There are no extra product charges. All the charges for setting up and running the Guaranteed Fixed term Income Plan are taken from the fund and accounted for when we set the income level.

Adviser charges

We’re happy to facilitate an adviser charge. It can be a fixed amount or a percentage of the annuity-purchase amount, with the option to specify a minimum and/or maximum. 

Commission

For non-advised sales commission is available and rebating is allowed. For any commission enquires please contact acinfo@aviva.com

Our Guaranteed Fixed Term Income Plan is designed for clients who:

• Want a regular, guaranteed income for a fixed term
• May want a Guaranteed Maturity Value at the end of the fixed term as a lump sum or to purchase another retirement product
• May want to access 25% of their pension fund as tax-free cash
• Would like the option to provide a guaranteed, fixed term income or lump sum to a beneficiary after their death

It’s unlikely to be suitable for:

• Clients who want the option to change their level of income as circumstances change
• Clients who want to secure a lifelong income
• Clients in a defined-benefits company scheme or who want to carry on paying money into any current pension scheme
• Clients who want greater flexibility over the level of income and are willing to accept the additional risks this may involve

Things to consider:

• You should shop around, in order to get your client the highest income as different providers will offer different rates.
• Does your client want more flexibility than this product can offer?
• How much is their pension fund worth?
• Does their policy have guaranteed options?
• Do your clients understand the implications of fixing an income for a fixed term?
• Depending on what options your client chooses, they may receive a smaller income or may not be able to benefit from some of the other options

Possible alternatives to the Guaranteed Fixed Term Income Plan include:

• Pension Annuity
• Income drawdown
• Other Open Market Option

For more information on product suitability please refer to the Target Market Statement which can be found here.