Primetime Retirement has unveiled details of the rates for the first issue of the Primetime Retirement Plan which opens for investment today.
Four versions will be available offering a mixture of fixed income (which is age and gender neutral), a protected maturity amount and investment upside potential.The options are:
Accumulation+ - Available for those aged 49 and over. This plan does not pay income but offers a protected maturity amount (PMA) of 106% of the original investment at the end of the six year term. An additional maturity amount (AMA) of 20.7% of the investment (126.7% in total) will be paid if the FTSE 100 Share Index is equal to or higher at the end of the plan term than it was at the start.
Balanced+ - This does not have investment upside but pays income and PMA designed to compete with the best Fixed Term Annuities (FTAs). The income is equal to 5.4% of the initial investment (paid monthly and subject to GAD) and the PMA is 82.2%.
Capital+ - This offers a ‘money back' potential, with an income of 5.04% per annum, a PMA of 70.5% and an AMA of 29.5%. So if the level of the FTSE is equal to or higher at the end of the term than it was at the start, the client gets back 100% of their initial investment.
Income+ - This pays the highest level of income (subject to GAD) of all four options. Income is 5.88% per annum, the PMA is 74.1% and the AMA, if payable, would add an additional 10.9% to this amount (85% in total).
Kim Lerche-Thomsen, CEO of Primetime Retirement said the plans will suit all typical retirement planning needs: "from those approaching the final accumulation years looking for a safe home for their investment, to ‘distressed drawdown' clients who want to move away from stock market volatility without sacrificing drawdown-style benefits."
The Primetime Retirement Plan is a six year investment and sits within a SIPP wrapper (provided by Pointon York.) The structured deposit is provided by Investec.
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