Our Flexible Life Annuity (‘FLA’) is a investment linked annuity where you can control the amount and frequency of the income payments (also referred to as ‘annuity payments’). Investment linked means that the value of the annuity is linked to the performance of your chosen investments, which can fall as well as rise.
Income
1) The FLA is designed to provide you with income but with added flexibility so that you can adjust the income to your current and future needs. You can increase, decrease, pause, and restart your income payments.
2) The income is tax-efficient. There is a part of the income that is tax-free, this is called the Tax Exempt Sum (‘TES’). At outset we calculate the TES in line with HMRC rules. The TES remains constant and only changes if you make additional ‘top-up’ investments into your annuity. The good news is that if you don’t use it all in one year it can be carried forward to future years.
Premium
Unlike traditional annuities, additional sums or ‘top-ups’ can be added. The minimum amount is £50,000, with no maximum limit.
Being investment linked means that your money can continued to benefit from potential investment returns. Just remember that the value of investments can fall as well as rise and returns may be lower than you expect.
The FLA can be used as an estate planning solution if purchased in conjunction with a London & Colonial Assurance (‘LCA’) preference share. To find out more about preference shares, read our simple guide.
1) are aged 18 or over and live in the UK
2) have at least £100,000 to invest
3) need tax-efficient income that you can adjust
4) want their money to remain invested to benefit from potential growth on their investments
5) have used their ISA or pension allowance and could benefit from other ways to invest tax-efficiently
6) want the ability to make additional ‘top-up’ investments into their annuity.
1) non-UK tax residents
2) those aged 17 and under
3) individuals who don’t have £100,000 to invest
4) those who don’t want to remain in the investment market or aren’t prepared to accept potential investment risk
5) individuals who need guaranteed annuity payments.
New customers
Our products are only available to customers that have received financial advice. If you need help in finding a financial adviser, please read our helpful guide here.
Existing customers
1) Request a change to the amount or frequency of income payments: we recommend speaking to your adviser first of all. We will then need this form to be completed and returned to us by your adviser.
2) If you would like your income payments paid to a different bank account or your bank details have changed, please complete this form and return it to us.
3) If you need to tell us about a change in personal circumstances such as your name, address, or email, then complete this form and return it to us.
4) If you need to notify us of a death, please contact our Customer Services Team. Their contact details can be found here.
1) Gibraltar Jurisdiction Facts
2) Flexible Life Annuity Essential Facts
3) Essential Facts of a Protected Cell Company
4) Essential Facts of a Preference Share
Alternatively, you can speak to you financial adviser to find out more, or contact our helpful Customer Services Team.
Our products are only sold through advisers. We do not offer our products directly to customers. If you would like some help in finding an adviser then you can learn more here.
When you buy one of our products the investments (funds) that we purchase with your premiums are placed into a ‘Cell’. As a separate cash transaction you 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. For more information please speak to your financial adviser. We also have a useful ‘Essential facts of a preference share’ guide which you can find here.
When the Flexible Life Annuity starts, the annuity payments are calculated using the applicant’s age and the initial premium paid. 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 for more information.
With the FLA there is a part that is tax-free (this is called the tax exempt sum) and there is a part that may be liable to UK income tax. As this depends on your personal circumstances you should speak to your financial adviser.
You can find out more in our FLA Essential Facts document.
Yes. We allow additional premiums, or ‘top-ups’, to be added to both of our flexible annuity products. The minimum amount you can top up is £50,000. There is no maximum limit.
If you wish to add an additional premium, please contact your financial adviser who can help you with this.
The Flexible Pension Annuity ('FPA') is a unit-linked lifetime pension annuity that gives you more freedom to:
1) choose the level and frequency of income payments, at outset, and then adjust that level whenever you wish.
2) to remain invested in the market (just remember that the value of investments can fall as well as grow).
3) consolidate pension pots by adding further crystallised pension assets.
The content of this website does not constitute any form of advice or recommendation and should not be relied upon when making investment decisions.
@Copyright 2024 London & Colonial Assurance PCC Plc is registered in Gibraltar. Registered number 80650. Registered office: 3rd Floor, 55 Line Wall Road, Gibraltar GX11 1AA.
London & Colonial Assurance PCC Plc is regulated by the Gibraltar Financial Services Commission. Permission number 5191.
