75 Plan
The Living Time 75 Plan is designed for those who want a longer-term fixed income, with the ability to review their financial plans and needs again at age 75 when the Plan term ends.
Which clients could benefit from the Living Time 75 Plan and what are the risks? Click here to read more »
The Plan aims to provide an income similar to a standard Lifetime Annuity with equivalent benefits (although clients can choose to take a lower income – even nil income – if they wish to). In fact, the Living Time 75 Plan has provided competitive rates of fixed-term income up to age 75 comparable to the best Lifetime Annuity rates in the market since launch in 2006.
If the client survives until the end of the term, the day before their 75th birthday, they will receive a Guaranteed Maturity Amount to reinvest in an appropriate pension product of their choice.
Optional death benefits can be selected at outset to protect their dependants in case they die during the term.
For an explanation of the death benefit options, click here »
Main features of the Living Time 75 Plan:
- The Plan runs to the day before the client’s 75th birthday (minimum term is 9 years so maximum age at entry is 65 years and 11 months)
- Minimum age at entry = 50 (55 from 6th April 2010)
- Maximum income approximately the same as that available under a standard Lifetime Annuity with equivalent benefits
- Guaranteed Maturity Amount at the end of the Plan term
- Optional death benefits
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Points to bear in mind
- Future income
Annuity rates may be lower in the future.
The income that the Guaranteed Maturity Amount (GMA) can buy at the maturity date is not guaranteed. It may be higher or lower than the amount a Lifetime Annuity would pay if purchased now.
The higher the income level the client selects at the outset of their Plan, the lower the Guaranteed Maturity Amount at the end of the Plan term, which in turn will reduce the future level of income the client can obtain. - Death benefits
If the client does not select at least one of the death benefit options under the Plan and they die during its term, no further Plan benefits will be paid, i.e. their remaining pension fund will be lost. - Income levels
The client's chosen income may be restricted throughout the term of their Plan by limits set by the Goverment Actuary's Department (GAD). Any income that cannot be paid because of a restriction will be added to the GMA, plus interest at a gilt rate determined by Alico. - Inflation
Inflation will reduce what the client can buy with their income in the future. - No withdrawal or changes
Once we have received the client's application for a Living Time Income Plan they will have 30 days to change their mind. After that, their funds cannot be moved or their benefits changed until the end of their chosen term.
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This site and its content is designed for professional advisers only. It is not approved for use by individual consumers.
Alico is the insurance company that provides Living Time Plans.
Living Time Limited is an appointed representative of American Life Insurance Company (Alico). Living Time Limited is registered in England with company number 04750947 and has its registered office at 1 Conduit Street, London W1S 2XA. American Life Insurance Company is a private limited company incorporated with limited liability in Delaware, USA number 0123730. Head Office: One Alico Plaza, Wilmington, Delaware, USA 19801. Branch Office: 22 Addiscombe Road, Croydon CR9 5AZ. Registered in England number BR000230. Authorised and regulated by the Financial Services Authority (FSA reference number 139417).