What is a Fixed Term Retirement Plan?

Regular income, ending with a lump sum

Our Fixed Term Retirement Plan pays out a guaranteed income for between 3 and 25 years.

Once the time is up, you will receive a guaranteed maturity lump sum, that you can then decide what to do with. For example, you could use it to buy another product. 

You can also decide not to take an income, and just take the maturity value at the end of the fixed term.

  • Secure and guaranteed income

    A guaranteed, regular income you can plan around, with confidence.

  • Payment options

    Your payments can be made monthly, quarterly, half-yearly or yearly and either at the start (in advance) or at the end (in arrears) of the payment period.

  • A fixed or increasing income

    You can choose a fixed income that always stays the same or set your income to increase each year by anything up to and including 10%.
  • Gives you control

    You can set the plan length, the regular income amount and the lump sum ‘maturity’ value.

  • Creates options later in retirement

    At the end, you can use the lump sum as you see fit. If your health was to deteriorate by the end of the plan you may be able to buy an annuity at a better rate.

  • Supporting your loved ones

    You can choose for your beneficiary to receive any remaining income payments and maturity value if you die during the plan.

  • Withdrawal from the lump sum

    You can choose to make up to three withdrawals at any time during the term of the plan, subject to a minimum withdrawal of £5,000 each time. More details on withdrawals and the Guaranteed Minimum Payment Period.

    Full details on these features are in the Key Features document.

  • Am I eligible?

    You must be aged between 55 and 85 and have at least £10,000 left in a pension pot to buy one after you’ve taken your tax-free cash.

  • I want some flexibility later

    If you'd like a guaranteed income but also want to give 'future you' some options, this may be for you. You’ll be able to decide what you want to do with the lump sum when the plan ends.

  • We're both fit and healthy

    This product doesn't take your health or lifestyle into account when working out your income. If you or your partner have any health or lifestyle risks now, you could get a higher income from a Pension Annuity or other products that assess your health. If you choose the Fixed Term Retirement Plan, though, you can still get an annuity in the future with the lump sum you get when the plan ends.

  • I want security from risks

    Your income is guaranteed and is not affected by the performance of investment markets.

  • Tax-free cash

    You can take up to 25% of your pension pot as tax-free cash. If you don’t take the tax-free cash at the start of your plan, you can’t take it later.

  • Taxable income

    Payments will be taxed as income, which could affect any benefits you claim. The amount of tax you pay on income from the plan will depend on your circumstances, and may change based on your income tax rate.

  • Higher income means a smaller lump sum

    Choosing a higher income will reduce the lump sum, similarly if you choose a lower income, you could get a higher lump sum. You can also choose not to take an income at all and just get your lump sum at the end.

  • With security comes less flexibility

    You won't be able to change the amount you get, but if your circumstances change you may be able to cash it in or transfer it to another pension product.

  • When it's gone, it's gone

    Once the plan ends you won't have this regular income any more. It’s important to consider if you will have another source of income to replace it.

  • Health risks not recognised

    If you or your partner has a health or lifestyle risk, a Pension Annuity, or products that take your health into account, may offer a higher income.

  • Mind out for inflation

    If you choose to get the same income every year, this means with inflation, it may not buy as much in the future. Even with modest inflation, 20 years may halve the power of a £1 - will your lump sum be enough?

When you purchase our Fixed Term Retirement Plan, we aim to make the process simple, clear and jargon free. It can take as little as 15 minutes to get a personalised quote with us. You can save your quotes and come back later once you've shopped around. You can also complete your application online.

Here’s a summary of the process you’ll follow if you quote and apply online.

 

Before you start

We’ll run through some questions and considerations to make sure you’re ready to get a quote online.

About you and your pension pot

We’ll ask some details about you and about any pensions you’d like to use to get a quote.

Choosing a guaranteed income product

As well as getting a quote for our Fixed Term Retirement Plan, you can also quote for our Pension Annuity and Cash-Out Retirement Plan. You’ll be able to get multiple quotes on different products to see how the different options affect your level of income.

Get multiple quotes

You'll be able to select different options to see what income you could get and create multiple quotes to compare what these look like. Unless we tell you otherwise, the quote you choose is guaranteed for 45 days.

Shop around

It's important to shop around and get as much guidance and advice as you need before you make any decisions.

Buying an Fixed Term Retirement Plan

When you’re ready you can apply online for the product using the guaranteed quote you saved previously.

 

 

Ready for a personalised quote?

If you know what you want and have your paperwork to hand, it only takes about 15 minutes to get an online quote.

Please select Legal & General in the drop down option as the source of your pension savings.

Continue to quote

Help to stay safe from scams

See how you can protect yourself from fraud.

Need some help?

There are different retirement income products to choose from and the rates they offer can vary. Shop around to make sure you get the best deal for your situation and use available guidance and advice services before you apply. Other providers may have more appropriate products or be able to offer you a higher level of retirement income.

 

Retirement guidance

Pension Wise from MoneyHelper

You can get guidance from the government's free and impartial service to help make your money and pension choices clearer.

The availability of appointments can vary between a few days and several weeks, so if you need guidance, it's a good idea to book an appointment slot now:

0800 100 166
8am to 6.30pm, Monday to Friday.
Calls may be recorded and monitored.

Send us a secure message

If you have any questions, you can send a secure message through your account. Use the link below to log in.

Get financial advice

 

Financial advisers can give you professional advice for pension planning.

You usually need to pay for their service and in return they recommend how to make the most of your pension given your circumstances.

To find and compare financial advisers please visit their website below.