Fixed Term Retirement Plan

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As you approach your retirement, you may find that you’re not quite ready to use your pension fund to buy a retirement income. You may want more time and flexibility before you commit to buying a retirement income that will last for the rest of your life.

If that’s the case, the Fixed Term Retirement Plan could be just the thing for you.

What does it offer me?

• A guarantee around what your plan will be worth when it matures.
• You can choose whether or not to take an income for the term of the plan.
• You can take up to 25% tax-free cash if you haven’t taken benefits from your pension fund before the plan starts.
• You can leave the remaining pension fund value, after any tax, for a dependant or dependants.

Things to think about

• You must have at least £30,000 to invest after you’ve taken any tax-free cash.
• You must invest a minimum of £5,000 per investment option.
• You can’t cash in the plan at anytime even if your circumstances change.
• You can't make any changes to the plan once it has started, even if your circumstances change.
• There may be more suitable products for you if you’re not in the best of health.

Investing your pension fund for a guaranteed value on maturity

The Fixed Term Retirement Plan gives you two investment options: the guaranteed maturity value, and the Aviva Guaranteed Fund. You can choose to invest your pension fund in one or both of these options - if you choose both options then the plan can only be held for five years.

You can choose to take a fixed income from your pension fund, we'll work out the cost of this income at the start of the plan. We set aside the amount of money necessary to provide you with the income you've chosen over the term of the plan and the remainder you invest into one or both of the investment options.

We take your pension fund and invest it for you. If you choose the guaranteed maturity value, we'll invest your money at the start of the plan and tell you how much it will be worth on maturity. If you choose the Aviva Guaranteed Fund, the value of your plan will be at least what you originally invested when it matures, plus any growth your investment may of experienced over the term of the plan. If you decide to invest your pension fund into both options the guaranteed amounts will depend on the percentage split of your money invested into either option.

Please read the key features (PDF 256KB) for further information on the Fixed Term Retirement Plan.

Is this plan right for you?

Everyone’s different, so what’s right for one person may not be right for another. We’ve put together a few pointers on how you can check whether this plan is suitable for you or not. Take a look at ‘Is the Fixed Term Retirement Plan right for me?’.

You can also read how people like you can use the Fixed Term Retirement Plan as they approach retirement.

What other options are open to me?

Apart from the Fixed Term Retirement Plan, we offer a range of annuities and an income drawdown plan. You can compare our retirement products to see if any of the products we offer are suitable for you. We also recommend that you talk to a financial adviser, who can help you decide which products are most suitable for you.

How to apply

You can only invest in a Fixed Term Retirement Plan through a financial adviser. You should check first whether you’re eligible for the plan.

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WC04051 11/2011