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Fixed Term Annuity: conversion feature

The Just Retirement Fixed Term Annuity offers an innovative conversion feature that can be used to convert to another retirement income product, at any point during the Plan term, for any reason, if it suits your individual circumstances and financial advice has been given.

The feature is automatically included when you select Plan Protection at the outset. Plan Protection returns a lump sum to your beneficiaries (potentially subject to a tax charge, currently 55%) should you die during the Plan term.

How does the conversion feature work? The conversion feature is primarily designed to allow you to convert your Fixed Term Annuity to an enhanced annuity at any point during the term, potentially giving you a much higher income than traditional lifetime annuities, providing your state of health or lifestyle choices mean you qualify. 

Other common reasons for exercising the conversion feature, following financial advice:

  • death of a spouse, civil partner or financial dependant
  • divorce or the dissolution of a civil partnership
  • marriage or civil partnership
  • redundancy (for those drawing a retirement income while continuing to work)
  • change in financial circumstances leading to a new income need.

Once the conversion feature is exercised, the conversion value can be used to buy:

  • a lifetime annuity (either a standard annuity or an enhanced annuity if you qualify)
  • a capped drawdown arrangement
  • any other appropriate retirement income product of your choice.

Risks of the conversion feature The Just Retirement Fixed Term Annuity is designed to be held until the end of the term. If you exercise the conversion feature, the income you may receive from another retirement income product may be higher or lower than your current income.

Your conversion value may be less than the Guaranteed Maturity Amount and the original investment if the conversion feature is exercised.

 We recommend you talk to your financial adviser for more details about this and the other benefit options available with a Just Retirement Fixed Term Annuity.

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