Enjoy a guaranteed income for a fixed term

What is a guaranteed fixed term income?

The Standard Life Guaranteed Fixed-term Income product is a way of accessing some or all of your pension savings to provide you with a guaranteed income for a fixed term, a maturity value at the end of the term, or both, depending on the options you choose. It can help you if you are simply looking for a guaranteed income for a fixed period of time, with the option of doing something else at the end of that time.  

It could also provide peace of mind if you are worried about market volatility and are looking for a solution that can give you a guaranteed return at the end of the chosen term. You can also add additional features to provide a spouse, civil partner, or dependant with an income if you die during the term and add options to protect your income against inflation. 

This product has been designed with flexibility in mind, allowing you to choose how much income you want to receive over the chosen term, with the opportunity to review your options at the end of term – tailoring the product to your individual needs. 

For more information on the Standard Life Guaranteed Fixed-term Income product and how it works see our customer guide. 

The amount of income you'll get depends on various factors, including: 

• The value of the pension savings you are using to purchase the product with 
• The rates available at time of purchase 
• If you decide to take a tax-free lump sum 
• How much income you choose (if you specify an amount) 
• Your age when you buy this product 
• The options you choose* 
• How often your income is paid 
• The value of any maturity value at the end of the fixed term (if you choose one) 
• Any adviser charges or commission 

*Certain options are not free and come at an extra cost. They will reduce the amount of your income payments and/or the maturity value at the end of the fixed term (if you chose one). However, you should take into account the longer-term benefits and peace of mind they can offer when you look at the income you’re likely to receive. 

It’s important to remember that your income payments will be treated as earned income and will be taxed at your marginal rate of income tax. 

Laws and tax rules may change in the future. Your own circumstances and where you live in the UK also have an impact on tax treatment. 
 

Is the Standard Life Guaranteed Fixed-term Income plan right for me?

You can tailor your income to make sure your guaranteed payments will meet your needs. 

Depending on the options you choose, this will reduce the amount of income you're paid. Remember, after your plan start date, you will not be able to change your options.

The Standard Life Guaranteed Fixed-term Income plan may be right for you if you: 

• Would like a regular, guaranteed income for a particular period of time, between three years and 25 years
• Would like to delay buying a lifetime annuity as you feel your circumstances may change in the future, but still have a need for income. (For example, your income needs may change in the future, or you may worry that your health could deteriorate and that you might benefit from better, enhanced annuity rates when you are older)  
• Would like the option of a maturity value at the end of the term to either take as a lump sum or to buy another income product (for example, a lifetime annuity or drawing regular sums from your remaining pension savings) 
• Would like the option to take additional taxable lump sums or to surrender your policy early if your circumstances change. The option to surrender is only available if you take a Guaranteed Period equal to the full term of the product 
• Would like the option of having your income increase each year, either in line with inflation to protect the value of your money, or at a fixed rate that suits your plans 
• Would like the option when you die to provide a lump sum for your loved ones - or for the guaranteed income to continue being paid to a beneficiary or dependent 
• Would like to avoid your income being impacted by investment risk for a specified period of time 
• Are prepared to accept that if you die, the total income you have received may be less than the total amount that was used to buy it 
• Are prepared to accept the income you can buy with the maturity value at the end of the term may be less than you expected if market conditions change 
• Are prepared to accept that your pension savings could run out before you die
• Live in the UK

The Standard Life Guaranteed Fixed-term Income plan may not be right for you if you: 

• Are looking to receive a guaranteed income for the rest of your life 
• Have less than one year to live or you are looking for a short-term income solution for less than three years 
• Have less than £10,000 in your pension savings 
• Would like to keep your pension savings invested so you can potentially benefit from any future investment growth 
• Don’t want to buy additional guarantees or protection in order to leave any remaining pension savings to a beneficiary or dependent, should you die during the fixed term 
• Have been declared bankrupt and the fund value of your pension savings has been earmarked to settle some, or all, of your outstanding debts 
• Wish to take any Defined Benefit scheme pension benefits or any safeguarded benefits (such as Guaranteed Annuity Rates or Guaranteed Minimum Pension) through this product 
• If you have certain medical or lifestyle conditions, as you may be able to receive a higher income from a product that takes these into account