Similar to a lifetime annuity, a fixed-term annuity (FTA) provides you with a guaranteed, secure income, but over a set period of years. Fixed-terms are available from a minimum of three years to suit your requirements. If you are looking to secure your income for the rest of your life, then a lifetime annuity may be more appropriate.
How does an FTA work?
As with all retirement income products, you can take up to 25% of your fund as a tax-free lump sum. The amount you have remaining is known as your ‘purchase fund’ and is used to set up your annuity.