If you do not want or need to take any income, you can simply leave your fund until the end of your chosen plan term and receive a maturity lump sum instead. This maturity value is known from outset and is not affected by changes in market conditions.
By choosing this option, you can elect to take a regular income during the plan term plus a known maturity lump sum at the end of the term. The more income you take, the lower your maturity amount lump sum will be. Or, you could choose to receive a higher maturity lump sum by taking a lower level of regular income.
In return for investing your pension fund with us, we will pay you a regular income over a term of between 3-6 years so that, by the end of the plan term, your entire pension fund is depleted.
Value Protection Death Benefit
Primetime Retirement Plans offer lump sum death benefit (Value Protection), which is a return of the fund less any income and fees paid to the date of death. It is important to remember that, with the introduction of Pension Reforms in April 2015, the rules relating to tax rates applicable on pension lump sum death benefits have changed:
If clients die prior to age 75, any beneficiary can take the entire pension fund as a lump sum or as tax free income (through the purchase of an annuity or income drawdown).
If clients die after age 75, any beneficiary has three options: take a lump sum, purchase an annuity or purchase income drawdown
Under all options, the beneficiary would pay income tax at their marginal rate.
The Primetime Retirement Fixed Term Drawdown Plan is covered by the Financial Services Compensation Scheme (FSCS). The FSCS is the body that can pay clients compensation in the event of the failure of any of the associated financial services firms.
Investments made into our Deposit Fund are protected through the FSCS up to £85,000* per deposit taker. We currently have two deposit taker partners making a total FSCS protection of £170,000.
The maximum investment allowed in our Investment Fund account is normally £50,000* as this ensures it is fully covered by the FSCS limit for investments, although we will allow larger investments subject to receiving written confirmation that you are happy to invest beyond this protection limit.
This means that, currently, up to £220,000 of investment into a Primetime Retirement Fixed Term Drawdown Plan could be covered by the FSCS if a combination of both a Deposit Fund and Investment Fund is chosen.
* As at February 2017. Speak with your Adviser or Financial Intermediary or check www.fscs.org.uk for details and confirmation of cover limits.