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The flexible annuity that changes shape every three years
The AGA gives your clients the option to buy their retirement income in 3 yearly rolling cycles – effectively allowing them to delay purchase of a ‘locked in’ product. It gives your clients the flexibility to change their income if their circumstances change. They can take advantage of this flexibility at the end of each 3 year period up to their 85th birthday. A lifetime income has to be purchased by their 85th birthday. This, plus the potential for growth from the Investment Element, makes the Annuity Growth Account a unique solution.
The AGA also offers:
• A three-year guaranteed period from outset with a further three year guarantee from the first and second review date if selected at outset.
• Fixed income level for the first three years.
• Control of Investment Element with potential for growth, increased income levels at future reviews.
• Bonus on survival to each three-year review point added to the Investment Element providing the potential for increased income in future.
• The ability to change the provision for the second annuitant, including the ability to remove the second annuitant if circumstances change.
• Option to transfer at each review date to fix a lifetime income with Canada Life or purchase a lifetime annuity with another provider.
• A phased investment option to enable your client to automatically move money gradually from one group of funds to another over a defined period of time, free of charge. The option can be taken at outset or added at a three-year review and can be applied to new and existing business.
For further information please refer to the policy provisions.
• The AGA is backed by our Service Charter that commits us to provide an excellent service to you and your clients. The charter includes non performance penalties – if we don’t keep our promises we will pay you.
Acceptable Sources of funds
OMOs (Open Market Options)
Defined Benefit
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No
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Defined Contribution
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Yes
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Transfers
Defined Benefit
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Yes
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Defined Contribution
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Yes
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Allowable ages
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First Annuitant
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Second Annuitant
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Minimum age
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55 attained
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50 attained
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Maximum age OMO
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82
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82
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Maximum age Transfers
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75
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75
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Maximum age for fixing a lifetime income
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85
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85
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Purchase money
Minimum
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£35,000 after any PCLS and adviser charge are paid
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Maximum
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£1,000,000
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Payment options
Payment frequency
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Monthly / Quarterly / Half Yearly / Yearly
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Payment method
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BACS
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Death benefits (single life annuitants)
3 year guarantee period can be included from policy inception and at first/second review up to a maximum of 9 years
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Death benefits (where a second annuitant is included)
100% of the three-year income and Investment Element protected. This can be changed at each review.
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3 year guarantee period can also be included
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66.66% pf the three-year income and Investment Element protected. This can be changed at each review.
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3 year guarantee period can also be included
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50% of the three-year income and Investment Element protected. This can be changed at each review.
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3 year guarantee period can also be included
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Taxation
Income
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Income payments are taxed under the PAYE (Pay as you earn) system.
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Income paid on death within the Guarantee period
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If a nominated beneficiary form (expression of wish) is completed and the trustees exercise their discretion to pay the nominated beneficiary it should not form part of the annuitants estate for inheritance tax purposes.
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Past performance is not a guide for the future. The value of units can fall as well as rise. Currency fluctuations can also affect performance. The value of the investment element of the Annuity Growth is not guaranteed and depends upon the performance of the selected funds.
At each AGA review, annuity rates may be lower at outset. If so, when securing a lifetime annuity using the value of the Investment Element, the annuity rate may give a smaller income than you could have received at outset (depending on the level and type of annuity selected).
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