Living Time has reduced the minimum term on its Income Plan to three years, offering IFAs and clients extra flexibility to arrange a secure income while keeping their options open in early retirement.
The Income Plan pays a secure rate of income during the term and then returns a guaranteed maturity amount the client can use to purchase a new income solution that best fits their current needs.
With no investment performance risk, the income can be tailored at the outset to meet clients' demands, subject to the maximum 120% of GAD limit.
"The Income Plan is a very straightforward package offering more flexibility than a lifetime annuity but more security than conventional income drawdown," says Dave Harris, managing director of sales and marketing at Living Time.
He believes the plans will appeal to IFAs who want to advise clients not only at the point of retirement, but on effective use of the pension fund throughout the early retirement years.
"The economic turmoil has made IFAs and clients very wary of locking for life into what 2009 has to offer, driving demand for alternatives to lifetime annuities," says Harris.
The Income Plan's secure income for any term of at least three years and to a maximum age of 75, allows retirees keen to wait for the economic dust to settle, to have a better view of their own health and wealth situation, he adds.
The Living Time Income Plan can accept pension money including protected rights funds and is available as a Trustee Investment Plan paying a guaranteed return within a SIPP.IFAonline
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected