Benefits of the Living Time 75 Plan

• Keeps client options open for longer
  the clients can reassess their needs at age 75
  
• No investment performance risk
  the clients know exactly what they will get back at the end of the Plan term
  
• A competitive rate of fixed-term income
  comparable to the 'best in market' lifetime annuity providers since launch

The Living Time 75 Plan would suit these clients because…

This will provide them with a fixed-term income to age 75 (subject to GAD limits) comparable to the ‘Best in Market’ lifetime annuities, without the investment performance risk they might be exposed to if they invested in Drawdown.

At age 75, they can re-assess their income needs and invest the Guaranteed Maturity Amount in a lifetime annuity (or Alternatively Secured Pension – ASP).  This means they could potentially benefit from a higher level of income, depending on prevailing annuity rates at the time and their personal health situation.

The Living Time 75 Plan would not suit these clients if…

• they wanted the absolute security of a guaranteed income for the rest of their lives, or;
• they are not prepared to take the risk that annuity rates may be lower in the future than they are today
• they are not UK residents - click here for details »

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.

Quick links