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With Profits Pension Annuity

a regular income for life that is linked to the investment performance of our With-Profit Fund, giving the income the potential to increase.
Here are some of the features of our With Profits Pension Annuity plan.

  • Easy for clients to buy - they can use funds from all UK registered pension schemes except contracted out benefits.
  • Range of options can help you to tailor it to individual client requirements.
  • Offers clients the potential for the income they receive to increase.
  • Provides clients with the guarantee of a minimum level of income.
  • Option to change the Anticipated Bonus Rate (ABR) or convert their With Profits Pension Annuity to a conventional annuity.
  • Clients can choose to have their income monthly or yearly.
  • Priced to provide clients with real value for money.
  • Clients can choose an option that guarantees to continue paying an income for a fixed period after they die.
  • For further information please refer to the Key Features document.
Here are some of the facts you need to know about our With Profits Pension Annuity plan.

Product details


 

CriteriaMin / MaxDetailNotes
Age LimitsMin age55An earlier age is allowed if your client is retiring through ill health or where the annuity is being bought for a dependant following the death of a member of a pension scheme (minimum age for recipient is 20).
Max age74
90		For payments from full fund Transfers
For payments from Open Market Options
TermMin term 
None Income is paid for life
Payment LimitsMin payment to start plan£20,000After taking any tax-free lump sums.
Max payment to start plan£1,000,000 
Anticipated Bonus Rate (ABR) Between
0-4%		A rate can be selected between these lower and upper limits in 0.25% steps
Here are the commission and charges for our With Profits Pension Annuity plan.

Charges

When working out the bonuses we'll add to the plan, we take 0.7% of the plan value to allow for our expenses. These expenses include:

  • administration costs
  • investment costs, and
  • any difference between how long our With Profits Pension Annuity planholders are actually living, compared to how long we expect them to live, when we work out the pension at the start of the plan.

We guarantee the income will never fall below a minimum amount and that we will not change the income more than once a year. We take a yearly charge, currently 0.75% from asset shares towards the cost of these guarantees.

The first two changes to level of ABR are free, however, the third and subsequent changes may incur a charge.

 

Commission

 

1.3%  plus uplift  Rebating in 5% steps is allowed

Here is some information to help you to decide if our With Profits Pension Annuity plan is right for your client.

Designed for customers who Not designed for customers who 
  • Are typically aged between 55 and 90
  • Want a regular income for life that could potentially increase
  • Understand that their income could go down as well as up
  • Have a maturing pension fund of at least £20,000 after Tax Free Cash has been taken.
  • May want to consolidate multiple pension pots.
  • May want to change their income arrangements in the future, although they can only change the ABR in line with the limits, or convert it into a conventional annuity. Furthermore, this can only be done after the first anniversary.
  • Want certainty over the level of income and are not willing to accept any risk that their income could go down as well as up and may not keep in line with inflation.
  • May want to change their income arrangements after a period of time, as they can’t change or cash in your plan, even if their personal circumstances change except as specifically allowed under the terms of this plan.
  • Belong to company scheme with benefits based on salary (defined benefit)
 Key considerations Possible alternatives
  • Life expectancy
  • Health/lifestyle
  • Size of investment available
  • Dependants
  • Whether guaranteed annuity options exist on the pension policy
  • Your client's With Profits Pension Annuity may change each year. It will depend on the Anticipated Bonus Rate they choose and the actual bonuses we add each year. Your clients' income can go down as well as up
  • The client's attitude to risk
  • Your client's can’t make other changes or cash in their plan
  • Income drawdown
  • Alternatively secured pension (aged 75 and over)
  • Other forms of non-pension  savings and investments


 

Here are some examples of the support we offer you and your clients on our With Profits Pension Annuity plan.

 Contact us

 We have a wide range of support staff available to help you, click here to find the right number that meets your needs.

 

 

 

 

 

WA12002 05/2010

Related documents

For Adviser use only. This information has not been approved for use with customers.

Aviva Life Services UK Limited.
Registered in England No 2403746. 2 Rougier Street, York, YO90 1UU.
Aviva Life Services UK Limited is authorised and regulated by the Financial Services Authority.