Income Plan overview
There are two Plan options available – the Living Time Income Plan (for Non Protected Rights money) and the Living Time Protected Rights Income Plan.
- Quick Guide to the Non Protected Rights Plans, click here »
- Quick Guide to the Protected Rights Plans, click here »
Main product features
- Minimum investment: £10,000 net of PCLS
- Minimum term: 3 years
- Minimum age at entry: 55
- Maximum age at entry: 71 years and 11 months
- Maximum ceasing age: 75 (the day before the Plan Holder’s 75th birthday)
- Minimum income that can be selected at outset: £nil
- Maximum income that can be selected at outset: £Max GAD
- Death Benefit options at outset:
- Value Protection (mandatory on the Living Time Protected Rights Income Plan)
- Guaranteed Period (minimum 1 month to a maximum of 10 years). This benefit is not available on the Protected Rights Income Plan.
- Spouse/Civil Partner Benefit (if selected, must be set to 100% on the Living Time Protected Rights Income Plan)
- Value Protection and Guaranteed Period cannot be selected together
- For an explanation of the death benefit options, click here »
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Adviser Guide (hover)
- Click the icon below to download our Adviser Guide to Living Time Plans.
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 Government 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.