Retirement Income, all joined up

An easy and efficient way to provide essential retirement income

The Plan offers your clients the safety net of a guaranteed income for life, alongside their existing drawdown investment solutions. It’s available as an option on the Fidelity Adviser Solutions Platform, so you can manage their guaranteed income and other drawdown solutions all in one place – making it easy for your clients to adapt to their changing circumstances and preferences throughout retirement.

The Plan pays income into your client’s Product Cash account, so they have complete flexibility to decide whether to withdraw it as income, hold within the Product Cash account or re-invest it in other drawdown investment solutions available on the platform.

As the Plan is held within a Flexi-access Drawdown Account, the income will only become liable to income tax once it is withdrawn from the Product Cash account into a client’s chosen bank account.

How it works
 

 

With an optional death benefit

Your clients can choose to include an optional death benefit, known as Value Protection, when their Plan is set up. It’s designed to provide a lump sum to the Product Cash account in the event of death.

You can find out more about Value Protection in our adviser guide

 

It’s potentially suitable for your clients if they:

• Don’t want to risk outliving their pension savings
• Want to receive a guaranteed lifetime income into their Flexi-access Drawdown Account to manage all their income in one place
• Would like the option to potentially provide a lump sum death benefit to their Product Cash Account when they die (via Value Protection where applicable)
• Would like to avoid part of their retirement savings being impacted by the investment markets
• Live in the UK and are typically aged between 55 (rising to 57 from 6 April 2028) and 85 years old
• Typically, have pension savings of £100,000 or more
• Have, or are about to appoint, a financial adviser to manage their retirement income from their existing or a new Pension Account

It’s unlikely to be suitable for your clients if they:

• Don’t have a need or desire for a guaranteed lifetime income
• Would prefer a standalone guaranteed income not held within the Pension Account
• Would like to keep all of their pension savings invested so they can potentially benefit from any future investment growth
• Have a very short life expectancy or are terminally ill i.e. a medical professional has diagnosed an illness or condition which cannot be cured and is likely to very shortly lead to a person’s death
• Are looking for a short-term income solution rather than one that lasts a lifetime
• Want to use all of their pension savings for a guaranteed income
• Don’t have or want to use a financial adviser
• Would like a guaranteed income that automatically increases each year
• Want their guaranteed income to continue to a spouse or dependant in the event of their death

Age limit
To purchase a Standard Life Guaranteed Lifetime Income plan, your clients must be aged between the ages of 55 and 85. The minimum age will increase to 57 from 6 April 2028.

Health and lifestyle
Your client's health and lifestyle will influence the amount of guaranteed income they receive. You can maximise their potential guaranteed retirement income by letting us know of any medical conditions or lifestyle factors they have. These can range from smoking or high cholesterol to more serious or life-threatening conditions such as cancer.

Purchase price
The minimum amount your client will need to buy a Plan will be £10,000, up to a maximum of £500,000 within their Flexi-access Drawdown Account. You can recommend clients buy more Plans if their circumstances change over time. Having this flexibility allows your clients to take advantage of any potential improved Plan rates in the future for example, as they get older or experience changing health. The total amount of Guaranteed Lifetime Income your clients can invest in multiple Plans is £1,000,000.

Product charge
Our charges are incorporated into the income your clients receive from the Plan including the cost of any death benefit selected. The Plan doesn’t facilitate payment of any adviser remuneration. However, if agreed between you and your client, a remuneration charge may be facilitated from the Pension Account. The value of the Plan may also be used when Fidelity calculate any Pension Account charge.