• Press releases
  • Standard Life launches new Guaranteed Fixed-term Income product
  • Guaranteed Fixed-term Income provides a guaranteed income for a fixed period together with the opportunity to change plans at a later date
  • This can help bridge an income gap, such as retirement before state pension payments begin, or to ensure the length of time a guaranteed income will be paid.
  • The Guaranteed Fixed-term income launches amid growing awareness of how blending retirement products can offer both certainty and flexibility
  • It is brought to market following the launch of the Standard Life Pension Annuity

Standard Life today announces the launch of Standard Life Guaranteed Fixed-term Income, a guaranteed income designed to offer more certainty for people approaching or in retirement but with added flexibility to adapt their plans once the fixed term period comes to an end.

Aimed at people between the ages of 55* and 85, customers can fix the period that best suits them - anything from 3 to 25 years, with a minimum purchase price of £10,000.

Given almost half (46%) of people expect to transition gradually in retirement [1], the Standard Life Guaranteed Fixed-term Income product can be used by those looking to top up their income from work for a period. Similarly, for those who fully retire before state pension age, it can provide a secure source of income until the state pension kicks in. Even for those fully retiring who wish to avoid making a permanent decision about what to do with their retirement savings, it can offer flexibility [2] without the need to worry about market volatility, with the option of choosing their income to increase each year as well.

Claire Altman, Managing Director for Individual Retirement at Standard Life, commented: “The road to and through retirement is different for everyone but the vast majority of people want both certainty and flexibility. As many as 9 in 10 people say income certainty in retirement is important to them, while the same proportion say it’s important to access all or some of their money flexibly. For these customers, the Standard Life Guaranteed Fixed-term Income does what it says on the tin – providing a guaranteed income for a fixed-term, as well as the flexibility to reassess their financial needs at a later stage.”

Manufactured by Phoenix Life Limited (part of the Phoenix Group) and distributed under the Standard Life brand, Standard Life Guaranteed Fixed-term Income is available on the open market through advised and non-advised routes, including industry quote comparison portals and leading specialist annuity brokers.

It is brought to market following the launch of the Standard Life Pension Annuity in September 2023 [3], an individual annuity that saw Standard Life become the first new provider to enter the annuity market since the pension freedoms legislation came into effect in 2015.

Claire Altman added: “It’s an exciting time for our Individual Retirement Solutions business as we continue to grow our individual annuity proposition. Fixed-term annuities and individual annuities work in different ways so there is value in having both as part of the overall mix of retirement income solutions available to people, providing even greater choice when it comes to ways to manage retirement income.”

Key features [4] of the product include the ability to add additional options to help shape how people take their guaranteed income. This includes a maturity value, which allows a customer to choose an amount that will be received at the end of the fixed term, which they can either take as a lump sum or put towards another retirement income product. The lump sum can be chosen at outset or calculated based on the level of income and the term selected.

Additional options also include death benefits, and the option to increase income annually, either in line with the Limited Price Index, Retail Price Index, or a predetermined fixed percentage, protecting the purchasing power of the income over time.

Claire Altman concluded: “There is increasing awareness around how blended retirement income solutions can often better meet peoples’ needs in retirement and the industry is responding with innovation happening across the retirement income market. Having an element of guaranteed income is an important part of this mix, and this launch demonstrates our commitment to developing products that will help make the best use of people’s hard-earned retirement savings.”

Notes to editors:

*increasing to 57 from 6 April 2028

[1] Phoenix Insights research conducted by Message House, carried out in January 2024 among 1,502 UK adults. Weighted to be nationally representative - How our perceptions and expectations of retirement and work are changing | Phoenix Group (thephoenixgroup.com)

[2] 2023 Standard Life Retirement Voice research: Retirement Voice | Standard Life

[3] Standard Life Pension Annuity: https://www.standardlife.co.uk/adviser/retirement-income/pension-annuity

[4] Standard Life Guaranteed Fixed-term Income – key product features and options:

Product feature/option  Availability within Standard Life Guaranteed Fixed-term Income 
Term
  • Between 3-25 years
Age
  • At least 55 years old (increasing to 57 from 6 April 2028)
  • Maximum age is 85, however the maximum age at the end of the term cannot exceed age 95.
Benefits

Options include:

  • A guaranteed income for a fixed term
  • A maturity value (selected at the start of the policy) to receive at the end of the term
Purchase price
  • The minimum amount required to purchase the Standard Life Guaranteed Fixed-term Income is £10,000 after any tax-free lump sum and any adviser charges have been deducted.
  • No maximum price, however purchases over £1,000,000 will require additional checks.
Income
  • Income will be dependent on factors including value of pension savings, age, term chosen and addition of maturity value at end of term.
Maturity value
  • Decided at the outset. Maturity value can be £0. If no maturity value is chosen, nothing further will be paid at the end of the selected term
Payment frequencies 
  • Monthly, quarterly, half yearly or yearly, payable in advance or arrears 
Intermediary remuneration
  • Commission (for non-advised). Adviser Charge (for advised
Inflation protection - escalation
  • 0-10% fixed escalation (fixed rate increases, up to 10%, each year)
  • Retail Prices Index (RPI) increases each year
  • Limited Prices Index (LPI) increases (up to a maximum of 5%) each year
  1. Death benefit options:  Guarantee Periods
  2. Dependant’s income
  3. Value Protection 
  1. The minimum duration of a guaranteed period is one year. Option to protect up to the full term of Standard Life Guaranteed Fixed-term Income Annuity Option cannot be combined with value protection.
  2. Income can continue to be paid to a spouse, civil partner or named dependent at death. 1% - 100% of income can be paid annually for the remainder of the selected term, or until the dependent dies. Option cannot be combined with Value Protection or a Guaranteed Period if a Guaranteed Period equal to the full term is selected.
  3. 1%-100%. Choose Value Protection of up to 100% of the amount paid A lump sum equal to the percentage of Value Protection selected, less the income payments already made.
Surrender options
  • Full or partial – if you have chosen a Guaranteed Period equal to the full term of the policy.

Media enquiries

For further information, photos, video content or interviews, contact:

Jennifer Smallwood / Samantha Griffith

Senior PR Manager / PR Manager

Standard Life, part of Phoenix Group

07581 062 180 / 07752 465345

Jennifer_Smallwood@standardlife.com / samantha_griffith@thephoenixgroup.com

About Standard Life

  • Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years  
  • Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme. 
  • Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together 
  • Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future.  
  • We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about. 
  • Standard Life is the proud headline sponsor of Race for Life, Cancer Research UK’s flagship fundraising event series.

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