| Income for Life product summary | |||
|---|---|---|---|
| Description | Unsecured pension with guaranteed income for life Includes option to continue guaranteed income at age 75 through an Income for Life Annuity or Income for Life Alternatively Secured Pension. |
||
| Scheme approval | Scottish Equitable Self-administered Personal Pension Scheme. Registered under the Finance Act 2004, registration number 00619027RP. |
||
| Basis on which plan can be issued | Single-life – guaranteed income payable to client only Joint-life – selected survivor can choose to continue with guaranteed income in an Income for Life plan of their own |
||
| Who can apply | Individuals | ||
| Age limits | Minimum age – 55 Maximum age – 70 |
||
| Contribution frequency | Non-protected rights transfers only |
||
| Minimum transfer | £50,000 | ||
| Maximum transfer | £1,000,000 | ||
| Contracting out: S2P Contracting out only |
No No |
||
| Death benefit | Depends on the client’s age and whether they’re in an Income for Life USP, ASP or annuity at death. See our Income for Life financial adviser guide for more details. | ||
| Guaranteed income level | A percentage of the highest recorded cash-in value of the plan. The percentage depends on the client’s age when they first take income from the plan and whether they’ve chosen a joint-life or single–life plan. |
||
Guaranteed yearly income |
|||
| Planholder’s age when they start taking income |
Single-life option | Joint-life option | |
| 55 to 59 | 4.5% | 4.0% | |
| 60 to 64 | 5.0% | 4.5% | |
| 65 to 69 | 5.5% | 5.0% | |
| 70 to 74 | 6.0% | 5.5% | |
| 75 | 6.5% | 6.0% | |
| Income escalator | We’ll use the total of the transfer values we receive, less any tax-free cash, to set the initial highest recorded cash-in value (HRCV) of the plan. Each year, on the income review date, we’ll recalculate the cash-in value. If that’s increased above the previous HRCV, we’ll base the new guaranteed income level on the increased HRCV. | ||
| Income frequency | Monthly, quarterly, half-yearly or yearly | ||
| Payment | Normally through BACS | ||
| Additional withdrawals above the guaranteed income level | Clients can take additional withdrawals above the guaranteed income level each year up to the maximum GAD limit. If the client makes a withdrawal that exceeds their guaranteed income level, then we’ll have to recalculate the HRCV, which may affect future guaranteed income levels. |
||
| Investment choice |
|
||
| What happens at age 75? | The client can continue the guaranteed income through an Income for Life annuity or Income for Life ASP. Or they can cash in their plan and buy a conventional annuity or transfer to an ASP. | ||
| Reviews | Every year we’ll send you and your client a yearly statement that shows the current guaranteed income level. Every five years we’ll review the GAD limits and let you know if the income level taken needs to change. | ||
Income for Life
Product details
