Fixed Term Annuity

The Just Retirement Fixed Term Annuity is a type of capped drawdown arrangement. It has some of the flexibility of conventional drawdown, including the ability to select an income within the GAD limits and more flexible death benefit options, without any investment performance risk. With its optional conversion feature, it allows the client to shelter from market uncertainty whilst keeping their options open to both an enhanced annuity and the Open Market Option.

There is a summary of the product below, or for more information please visit our Fixed Term Annuity section here »  

Main features of the Fixed Term Annuity

  • Terms of three years to 15 years up to a maximum maturity age of 90
  • Choice of income level at outset (within GAD limits)
  • Guaranteed Maturity Amount at the end of the Plan term, providing the client survives
  • Choice of death benefit options at outset
  • Plan Protection benefit includes an innovative 'Enhanced Annuity Conversion Feature' 
  • Flexible commission structure (between 0 and 5%)

You can download a quick guide to this product here »  

Trustee Fixed Term Investment Plan

 For trustees of SIPP and SSAS schemes, we can also offer our Trustee Fixed Term Investment Plan which can be used for a specific withdrawal amount or to achieve guaranteed growth for a future income purchase.

Main features of the Trustee Fixed Term Investment Plan

  • Terms of 3 years to 15 years
  • Ability to select 'nil' GMA (i.e. to run the fund down to zero over a chosen term through regular withdrawals)
  • Plan Protection benefit can be selected at outset and includes the 'Enhanced Annuity Conversion Feature'
  • Flexible commission structure (between 0 and 5%)

You can download a quick guide to this product here »  

Useful LinksFixed Term Annuity  
Plan Conditions  
Literature downloads  
Enhanced Annuity Conversion Feature  

Risks and points to note

Future income
Whilst the maturity amount is guaranteed, lifetime annuity rates could be higher or lower in the future. This means that the amount of income the client will be able to secure after their maturity date may be higher or lower compared to the lifetime annuity income they could purchase today.

The higher the level of income they select at the start of the Plan, the lower the Guaranteed Maturity Amount will be.

The client's selected level of income may be restricted throughout the term due to periodic reviews of the income limits, set by the Government.

Their situation may change after their income payments have started but they cannot change the level of income selected.

Death benefits
If no provisions are selected for the client's dependant and/or beneficiaries, or those the client had selected are no longer applicable, on the client's death nothing further from the Plan will be paid.

If Plan Protection is not selected, the option to convert into an enhanced lifetime annuity during the term will not be available.

The client's situation may change after the Plan has commenced but they cannot change the death benefit options selected.

Rate changes
The Fixed Term Annuity rates can go up and down depending on market conditions. If the client's pension funds arrive after the guarantee expiry date shown on their personal quotation, the purchase rates on the date of receipt will apply, and their income and/or Guaranteed Maturity Amount could be lower than those shown in their personal quotation.

Inflation
Over the years, inflation may reduce the real value of the client's income payments. They can choose to have escalation which means that their income would increase at a fixed rate between 0% and 8.5% each year. However, the rate of inflation may be higher than this.

Cancellation and changes
The client will have 30 days after they have received notice of their right to cancel (included with their personal quotation) to change their mind. After that they cannot cancel the Plan.

The Plan has no surrender value at any time.