Our Flexible Pension Annuity (‘FPA’) is a flexible unit-linked lifetime pension annuity, written on a single life basis. It is designed to allow your clients can invest their crystallised pension pots. They have the freedom to choose the level and frequency of payments they need at outset, and then adjust that level whenever they wish.
Eligibility
UK tax resident aged 55 and over. No maximum age. Single life basis only.
Premium
Minimum initial premium of £100,000, with no maximum. Additional investment ‘top-up’ amounts allowed, with a minimum amount of £50,000.
Income
The level and frequency of the income payments can be controlled to support your client’s current and future needs and objectives. The income payments can be increased or decreased, the frequency can be changed and the income payments may be paused and restarted at any time.
Being unit-linked, your client’s investment can remain invested within the market. There is a wide range of permitted investments which allows you to select an appropriate portfolio to maintain a steady income, based on your client’s attitude to risk.
The FPA can be used as an estate planning solution, if purchased in conjunction with a London & Colonial Assurance (‘LCA’) preference share. Find out more about the LCA preference share here.
The FPA is designed for individuals who are:
1) UK tax residents aged 55 and over. There is no maximum age
2) have pensions funds of at least £100,000 to invest
3) individuals who want to crystallise their pension pot(s)
4) want flexible access to support current and future lifestyles
5) want their money to remain invested to benefit from potential growth from their investments
6) want the ability to consolidate their pension pot(s) now and in the future.
1) non-UK tax resident
2) aged 54 and under
3) have less than £100,000 of pension assets to invest
4) don’t want to remain in the investment market or aren’t prepare to accept investment risk
5) need guaranteed annuity payments or are planning to take most or all of their pension as a lump sum in the future.
You can read our Fair Value Assessment here to find more out about product suitability.
If you are already registered with us then you can complete a Flexible Annuities Illustration Request form which you can find here.
If you aren’t already registered to work with us there are some steps you’ll need to go through. Find out more here.
Need help with an existing client’s policy?
As an adviser you are aware of the various solutions available when your clients need an income from their investment. We have designed a helpful support aid comparing the Flexible Pension Annuity with a traditional lifetime annuity and a drawdown product.
Case studies can also bring to life how the Flexible Pension Annuity can help in your client’s portfolio. Read our case studies here.
When a client buys one of LCA’s products the assets and funds they invest in are placed into a ‘Cell’. As a separate cash transaction the client can also buy the preference share that is attached to that Cell. Purchasing a preference share, as well as a LCA product, can be advantageous. Find out more here.
If you are already registered with us then you can complete a Flexible Annuities Illustration Request form which you can find here. To register with us then please click here or contact us at lca@stmgroup.online.
When the Flexible Pension Annuity starts, the annuity payments are calculated using the annuitant’s age, the initial premium paid, and the frequency of the annuity payments. Using an appropriate mortality table and current gilt yield we calculate the yearly annuity payment that the initial premium would support over the annuitant’s expected lifetime. The level of annuity payments is recalculated each time an additional premium is paid. Please refer to the key features document for more information.
The FPA annuity payments are taxed as pension income.
Yes. Both of our FLA and FPA products are flexible and therefore income (‘annuity payments’) can be increased, decreased, paused, or restarted. To make a change please complete this ‘Change to Annuity Payments’ form and email it to us at lca@stmgroup.online.
The Flexible Life Annuity ('FLA') is a unit-linked purchased life annuity, written on a single life basis.
It is available to UK tax residents, who have at least £100,000 to invest, and are looking for flexible tax efficient income ('annuity') payments for life. You and your clients are in control of the income payment amounts, the income frequency and how your client’s investments are managed. These can all be set at outset and varied at any point.
The content of this website does not constitute any form of advice or recommendation and should not be relied upon when making investment decisions.
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London & Colonial Assurance PCC Plc is regulated by the Gibraltar Financial Services Commission. Permission number 5191.
