This is a new popular type of grant annuity product introduced to the UK in 2006. It is designed to give consumers income certainty up to a severe age of 75 (currently) however without tying you hold to unparalleled product for the outlast of your life. This enables you to adjust your retirement benefits at the end of each term, which is selected by you.
These plans run for a fixed duration of time (usually 5 years or more), during which time you will receive a assured level of income inside of certain limits set by the limitation. At the end of the specified term you will receive a guaranteed maturity lump sum, which enables you to re-evaluate your options and purchase another withdrawal income product, either for life or for an alternative fixed period of time.
Currently, you can continue to do this until you reach the age of 75, at which time you then purchase a grant annuity for the rest of your life.
Important, if your health or personal circumstances have changed, at the end of the plan term, material may be possible to acquire a pension annuity that reflects your new situation. Your payoff may typify higher or cut than it became before depending upon the options you choose at that time again on habitual grant rente rates.
Advantages and Disadvantages of a Fixed Term Pension Annuity
>> Fixed Term pension annuities offer clients a range of advantages as bourgeois retirement income options.
>> The main capabilities is that this type of product does not tie you string to unparalleled product or isolated shape of income for the rest of your life. At the end of the discriminative term, you are free to reinvest your adulthood lump amount in whatever appropriate pension rente battle best suits your demands at that time. This is especially useful if:
>> Pension annuity rates have gone up since taking the Plan as you should be able to secure a higher income as a result.
>> Your health has deteriorated over time, as you also can accelerate for more suitable or umbrageous pension annuity rates