Skip to Content Help  |  Group Insurance Home  |  About us  |  Contact us  |  Log in or register   
  Canada Life
Search
 
Home Products
Investments  > Tax & Estate Planning  > Pre Retirement Planning  > Post-Retirement Planning  >
Funds Online services Tools Library News Technical Zone About us RDR GE  

     Expand  Annuity Growth Account
 
Annuity Growth Account  
 

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

No

Defined Contribution

Yes

Transfers

Defined Benefit

Yes

Defined Contribution

Yes

Allowable ages

 

First Annuitant

Second Annuitant

Minimum age

55 attained

50 attained

Maximum age OMO

82

82

Maximum age Transfers

75

75

Maximum age for fixing a lifetime income

85

85

Purchase money

Minimum

£35,000 after any PCLS and adviser charge are paid

Maximum

£1,000,000

Payment options

Payment frequency

Monthly / Quarterly / Half Yearly / Yearly

Payment method

BACS

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

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.

3 year guarantee period can also be included

66.66% pf the three-year income and Investment Element protected. This can be changed at each review.

3 year guarantee period can also be included

50% of the three-year income and Investment Element protected. This can be changed at each review.

3 year guarantee period can also be included

Taxation

Income

Income payments are taxed under the PAYE (Pay as you earn) system.

Income paid on death within the Guarantee period

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.

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).

 
 
 

The following key documents will give you more information on the Annuity Growth Account. The documents marked * are available to order. Further details of ordering literature can be found in the Library section of the site.

 
[ PDF; Jan. 02, 2013; 481KB ]
[ PDF; Apr. 08, 2013; 209KB ]
[ PDF; Jan. 01, 2013; 124KB ]
More related literature
 
Contact us  
 

Canada Life Limited
Canada Life Place
Potters Bar
Hertfordshire
EN6 5BA

Other enquiries
 
Pension funds  
 

Click to access performance and price information


 
Fund tools  
 

Fund Tools

Select from our tools below.


 
Adobe Reader  
 

This site will open in a new window

Adobe Reader

Download Adobe Reader
© Canada Life Limited. All rights reserved.  

This website is for UK financial advisers only and is not approved for use by private customers.
Canada Life Limited, registered in England no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA
Telephone 08457 226232 Fax 01707 646088 www.canadalife.co.uk/ifa
Canada Life group consists of Canada Life Limited, Canada Life Asset Management Limited (both authorised and regulated by the Financial Services Authority), Canada Life International Limited and CLI Institutional Limited (Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority). All promotional material produced is approved by Canada Life Limited.