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Fixed Term Annuity: conversion feature

The Just Retirement Fixed Term Annuity offers an innovative conversion feature. If the conversion feature is exercised the conversion value can be used in any way permitted by legislation at the time, subject to eligibility.

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 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 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.

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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