Living time for life after work
Latest rates
75 Plan
Latest rates
The 75 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 @ 01/09/10):
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 | £5,060 | £5,312 | £5,493 | 01/09/10 |
| Guaranteed Maturity Amount | £67,391 | £70,549 | £72,802 | |
| Aviva* |
£5,092 | £5,411 | £5,875 | 26/08/10 |
| Canada Life* | £5,002 | £5,371 | £5,869 | 09/07/10 |
| Legal & General* | £5,042 | £5,358 | £5,777 | 25/08/10 |
| AEGON | Scottish Equitable* |
£4,780 | £5,058 | £5,451 | 02/06/10 |
| Standard Life |
£4,631 | £5,015 | £5,531 | 07/05/10 |
| Prudential* | £4,506 | £4,872 | £5,377 | 27/08/10 |
| Friends Provident |
£4,495 | £4,865 | £5,372 | 11/08/09 |
| AXA | £4,243 | £4,620 | £5,119 | 23/09/09 |
* Postal coded. These companies are quoting annuity rates which vary by postcode. The rates shown are only indicative and actual rates will vary depending on individual circumstances.
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.
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What are the risks?
- 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.