Why the Living Time 75 Plan?
The Plan is a 21st Century alternative to more traditional retirement income products, providing clients with the certainty of income they need up to age 75 but with greater flexibility than a lifetime annuity.
The Plan effectively gives a client a review point in retirement and keeps their options open. It provides a Guaranteed Maturity Amount at age 75 to reinvest in an appropriate pension product that best suits their needs at that time. Security of income AND capital - a powerful combination.
And there’s more...
The Living Time 75 Plan income rates up to age 75 have been comparable to the ‘best in market’ lifetime annuity providers since launch in 2006 (rates as @ 07/01/10):
Basis for rates: Male life with spouse 5 years younger. £100,000 invested net of PCLS. 50% Spouse's pension, 5 year guarantee.
| Company | Age 55 | Age 60 | Age 65 | Last change |
|---|---|---|---|---|
| Living Time | £5,301 | £5,686 | £6,030 | 07/01/10 |
| Guaranteed Maturity Amount | £67,897 | £72,610 | £76,818 | |
| Canada Life* |
£5,373 | £5,747 | £6,255 | 09/12/09 |
| Aviva* | £5,213 | £5,615 | £6,240 | 09/12/09 |
| AEGON | Scottish Equitable* |
£5,297 | £5,586 | £5,988 | 12/12/09 |
| Legal & General* |
£5,221 | £5,535 | £5,950 | 02/11/09 |
| Prudential* | £4,849 | £5,232 | £5,733 | 09/11/09 |
| Standard Life |
£4,796 | £5,192 | £5,732 | 14/10/09 |
| Scottish Widows |
£4,852 | £5,124 | £5,508 | 01/04/09 |
| Friends Provident |
£4,566 | £4,925 | £5,418 | 14/10/09 |
| AXA | £4,243 | £4,620 | £5,119 | 23/09/09 |
* Postal coded
Notes: 1. The Living Time 75 Plan runs to age 75, at which point the client can secure another appropriate pension product using the GMA; All other annuities shown are lifetime annuities. 2. The GMA is a known amount upfront and is designed to provide at least the same level of income based on current annuity rates. However there is a risk of delaying annuity purchase to get a better rate, as should life expectancy continue to rise then annuity rates are likely to fall assuming other market conditions do not change. 3. Minimum age at entry increases from 50 to 55 on 6th April 2010.
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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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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).