Our Flexible Pension Annuity (‘FPA’) is an investment linked pension annuity where you control the amount and frequency of the income (‘annuity’) payments. Investment linked means that the value of your annuity is linked to the performance of your chosen investments, which can fall as well as rise.
Income
The FPA is designed to provide you with income for life 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.
Premium
Unlike traditional pension annuities, you can add additional crystallised pension pots. The minimum amount is £50,000, with no maximum limit.
Being investment linked means that your crystallised pension pots can continued to benefit from potential investment returns. Just remember that investments can fall as well as rise and returns may be lower than you expect.
The FPA 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 55 or over and live in the UK
2) have pensions funds of at least £100,000
3) need income that they can adjust
4) want to crystallise their pension pot(s)
5) want their money to remain invested to benefit from potential growth on their investments
6) want the ability to consolidate small pension pots
7) want the ability to make additional ‘top-up’ investments into their annuity.
1) non-UK tax residents
2) those aged 54 and under
3) individuals who don’t have £100,000 of pension funds 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, or may need most or all of the funds in the future.
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 Pension 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 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 annuity payments are taxed as pension income.
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 Life Annuity ('FLA') is an investment linked annuity, and unlike a traditional purchased life annuity the FLA 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) to add further sums of money.
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.
