Retirement planning isn't just swapping a pension fund for an annuity anymore.
Unsurprisingly, clients may be reluctant to commit to an income for life while annuity rates are low. Now there are products that let them delay their final decision, but still take tax-free cash and an income from their pension fund.
An attractive alternative
Fixed-term plans can be an attractive alternative to traditional retirement options. They offer clients greater flexibility, including tax-free cash if they haven't already taken it, and the option of an income without locking clients in for life.
With these products, clients have the opportunity to make a decision for a set period of time and then review their options when their fixed-term plan matures.
The Fixed Term Retirement Plan from Aviva
Along with other providers, Aviva now offers a fixed-term plan.
The Fixed Term Retirement Plan from Aviva lets clients aged 55 to 69 choose to:
• take their tax-free cash if they haven't already, take an income or both
• invest in one or both of two investment options with guarantees around what the value of the plan will be on maturity
• invest for a term of between five and 10 years, depending on which investment option they decide on.
Take a look at aviva.co.uk/adviser/atretirement to find out more about Aviva's flexible approach to retirement.
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From 6 April 2019