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Fixed Term Retirement Plan

An income and a guaranteed value on maturity

What is the Fixed Term Retirement Plan?

The Fixed Term Retirement Plan is a retirement plan that doesn’t lock you in for life. It gives you the chance to grow your pension fund through low risk investments and also allows you to take additional benefits. You make all your choices at the start of the plan. When the plan matures, you must use your remaining pension fund to buy another retirement income product.

The fixed term retirement plan gives you the following options:

  • Income - You can choose how much you want to receive at the start of the plan, within limits set by the Government Actuary's Department (GAD). You'll receive this amount and won't be able to change it through the term of the plan. It won't change unless your income has to be reduced under government rules.
  • Tax free-cash - You can take up to 25% tax-free cash if you haven’t already from your pension fund. If you don't take a tax-free cash lump sum at this time, you won't be able to take it at a later date.
  • Investment options - You can choose to invest your funds into the Aviva Guaranteed Fund, the Guaranteed maturity value fund or both. Each option comes with a guarantee of what your plan will be worth when it matures.
  • Death benefits - If you die during the term of the plan you can leave the remaining pension fund value, after any tax, for your dependant(s). Alternatively, they can set up a dependant's Fixed Term Retirement Plan, or choose to buy a retirement income product from the remaining value of your pension fund rather than take a cash sum.
  • 3-25 year plans - Depending on which investment option you choose, you could hold the plan for a minimum of three and a maximum of 25 years.

Things to think about

  • You must have at least £10,000 to invest after you’ve taken any tax-free cash and any adviser charge is paid.
  • You must invest a minimum of £5,000 per investment option.
  • You can't cash in or transfer the plan during the fixed term, 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. Take a look at 'What are my investment options' to find out more.

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. 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.

If you don't have an adviser, find one near you at http://www.unbiased.co.uk/.

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Contact us

For new policy enquiries please speak to your financial adviser. If you don't have an adviser, find one near you at http://www.unbiased.co.uk/.

If you are an existing customer, please call:

0845 301 6385

Monday - Friday
8.30am - 5.30pm

For our joint protection, telephone calls may be recorded and/or monitored.

Not ready to retire?

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