Our Fixed Term Retirement Plan is suitable for clients who want to use their pension fund without locking themselves in for life. It provides an ideal way for clients to choose to take an income from part of their pension fund and invest the remainder with a guarantee around the value available at maturity.
Here are some of the main features of our Fixed Term Retirement Plan:

  • Clients can invest using funds from UK registered pension schemes

  • Clients can access their tax-free cash if they’re using uncrystallised funds

  • Choice of two investment options; the Aviva Guaranteed Fund and the guaranteed maturity value, each offering a guaranteed value at maturity.

  • Clients can choose to take an income

  • Clients can choose a term of between five and 10 years depending on the investment option selected.

  • For further information please see the Fixed Term Retirement Plan key features (pdf)
    Here are some of the facts you need to know about our Fixed Term Retirement Plan:

    Criteria Min/Max Detail Notes
    Age Limits Minimum Age 55  
    Maximum Age for taking plan out 70-1 day Your client can take out this plan until the day before their 70th birthday. However, in that case, they are limited to a five year term as the plan must end before their 75th birthday.
    Maximum age for holding the plan 75-1 day
    		 The plan must end before your client’s 75th birthday.
    Term Minimum term 5 years All investments in the Aviva Guaranteed Fund are for five years. If your client chooses a combination of the Aviva Guaranteed Fund and the guaranteed maturity value, the term of the whole plan can only be five years.
    Maximum term 10 years
    Your client can choose their term if they just invest in the guaranteed maturity value. The term must be in whole months, but can be anything between five and 10 years.
    Investment Minimum investment £30,000 (£5,000 per investment option)
    		The minimum investment is £30,000 after your client has taken any tax-free cash.
    Maximum Investment None  
    Income Minimum Income £0 or £240 a year Your client can choose not to take an income. If they take an income, the minimum amount is £240 a year.
    Maximum Income Depends on fund size
    The income under this plan is governed by Government Actuary's Department (GAD) rules. The maximum will be determined by these rules.
    Here are some of the figures for our Fixed Term Retirement Plan:

    Charges

    • We’ll take an annual management charge from your client's investment in the Aviva Guaranteed Fund. This is currently 1.75% a year. 
    •  We’ll take an annual management charge from any money we hold in the Aviva Reserve Fund for your client. This is currently 0.15% a year.
    • The charge for managing your client’s guaranteed maturity value investment is accounted for in the rates used to calculate their guaranteed maturity value.
    • The charge for managing your client’s income is accounted for in the rates used to calculate their income.


     

    Commission

     

    • You have the option to sacrifice commission.
    • We offer 2.0% commission for this plan plus uplift.
    Here’s some information to help you decide if our Fixed Term Retirement Plan is suitable for your client:

     Designed for people who  Not designed for people who
    • Want to take an income, but don’t want to
      buy a lifetime annuity yet
    • Want to invest their pension fund with a
      guaranteed value at future date
    • Want to take tax-free cash from a pension fund from which they haven’t yet taken any benefits. If they choose not to take a cash lump sum at this time, it can't be taken at a later date.
    • Want to transfer crystallised pension fund(s)
    • Have at least £30,000 to invest after taking any tax-free cash
    • Want to choose the level of income they’ll
      receive (within GAD limits)
    • Want to leave their pension fund for their dependants if they die before the plan maturity date. The remaining pension fund may be subject to tax
    • Want the freedom to choose another retirement product at maturity.
    • Don’t want to commit to a minimum 5 year term
    • Want a guaranteed income for life now
    • Want to be able to change the plan during its term. This plan cannot be cashed in at anytime.
    • Want to invest in a range of funds
    • Want to switch funds
     Key considerations  Possible alternatives
    • Size of pension fund
    • Any expectation of major change in their lives
    • If they want to provide for a dependant
    • Not ready to commit to a permanent retirement income
    • An annuity
    • Income drawdown


    We’ve created a suite of literature for you to give to your clients, explaining all there is to know about the Fixed Term Retirement Plan. Find out more about the plan in the Fixed Term Retirement Plan key features document (pdf)

    We have a wide range of support staff to help you. Please see our contact details to find the right number that meets your needs.


    WA05048 05/2012
    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. FSA Registration No 145452
    www.aviva.co.uk