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Investing in a Self-Invested Personal Pension (SIPP) affords access to a wide range of investment assets through which risk and return can be balanced to suit an individual’s tolerance. However, recent events in global economies have resulted in unprecedented turmoil in the world’s stock markets that has seen many retirement funds depleted and some retirement incomes becoming unsustainable. As a result many trustees and advisers are looking to respond to their clients’ needs for certainty into the future. The Living Time Personal Investment Plan (PIP) comes with unique guarantees – guaranteed income and a guaranteed lump sum – providing certainty in these most uncertain of times. Whether it’s trustees looking to guarantee a future retirement fund for a specified member or, post retirement, looking to enjoy the growth potential of income drawdown and an income with the security of an annuity, the Living Time Personal Investment Plan offers a compelling solution for trustees and managers of trust-based pension schemes. |
Benefits of the Living Time PIP (for income)
- Income guaranteed not to fall within the chosen term, whatever the market landscape (3 year Plans)
- Guaranteed increases (up to 8.5%) in income can also be built in
- Surety of capital at the end of the plan term – a Guaranteed Maturity Amount (GMA) at a predetermined date is known from outset
- Because the Plan provides absolute guarantees, you have more time to actively manage other assets within your clients’ portfolios
Benefits of the Living Time PIP (for growth)
- Perfect if your client is investing for the medium to long-term and wants a secure asset to underpin their investment strategy or provide some balance to suit their risk tolerance; or
- If your client is looking for a guaranteed lump sum and to continue to grow their capital, perhaps to buy future income, to fund a future transfer or for annuity purchase for a specified member
- If your client wants to lock-in growth until the end of the chosen Plan term
Value Protection included automatically for added peace of mind
- Guarantees the payment of a gross lump sum should the specified member die during the term
- Upon death of the specified member, the amount payable is equal to the original amount invested less the total income already paid, if any
- The difference will be paid gross as a lump sum to the registered pension scheme
In order to apply for a Living Time Personal Investment Plan, the trustees and the specified member must be UK residents - click here for details »
Points to bear in mind
- Death Benefits
If the specified member dies during the Plan term, the original investment less the total income paid to the date of death will be returned to the registered pension scheme and any growth will be lost. - Inflation
Inflation will reduce the capital value of the GMA in real terms and the value of benefits subsequently purchased. - No withdrawal or changes
After the application is received by Alico, the trustees buying the Living Time Personal Investment Plan have 30 days to change their minds. After that the funds cannot be moved or the benefits changed until the end of the term. If the trustees decide to cancel, we will return the funds back to the registered pension scheme. If, in the meantime, the value of the investment has changed, the amount returned to the registered pension scheme may be more or less than was originally invested into the Living Time Plan. Additionally the trustees will be required to repay any income that they have received to Living Time.
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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).