The Just Retirement Trustee Fixed Term Investment Plan (TFTIP) is an ideal choice for trustees making an investment on behalf of a scheme member of a SIPP/SSAS. Whether they are looking for a specific withdrawal amount or to achieve guaranteed growth for a future income purchase, the Plan offers an ideal complementary alternative to more traditional investment options.
Main features of the Trustee Fixed Term Investment Plan
- Guaranteed level of withdrawal for the term of the Plan, plus a Guaranteed Maturity Amount (GMA) at the end of the term (if chosen). Both of these benefits are payable providing the scheme member survives until the end of the term
- GMA can be reinvested by the trustees at the end of the Plan term (subject to minimum investment levels)
- Plan Protection death benefit option to return a lump sum to the trustees on death of the scheme member during the Plan term
- An innovative Enhanced Annuity Conversion Feature* (included with Plan Protection) to switch to a Just Retirement enhanced annuity should the scheme member’s health deteriorate before the end of the term
* If included at outset. Subject to the scheme member’s state of health enabling qualification for a Just Retirement Enhanced Annuity.
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What are the risks?
As with all financial products, there are some potential risks associated with the Just Retirement TFTIP:
Death benefits
If the trustees do not select Plan Protection and the scheme member dies during the term then no further benefits are payable. Where Plan Protection is selected and the scheme member dies, only the investment amount less withdrawals already paid to the scheme is payable and any investment growth is lost.
Inflation
Over the years inflation may reduce the real value of withdrawals made. Trustees can choose to provide the scheme member with escalation which means that the withdrawals would increase at a rate between 0% and 8.5% each year. However the rate of inflation may be higher than this.
Rate changes
The Trustee Fixed Term Investment rates can go up and down depending on market conditions. If the scheme member’s investment arrives after the guarantee expiry date shown on the personal quotation, the purchase rates on the date of receipt will apply, and the scheme member’s withdrawals and/or Guaranteed Maturity Amount could be lower than those shown in the personal quotation.
Cancellation and changes
The trustees will have 30 days after they have received notice of their right to cancel (included with the personal quotation) to change their mind. After that they cannot cancel the Plan. The Plan has no surrender value at any time.
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Would you like more information?
You can download a quick guide to the product using the link below:
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