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Fidelity introduces a new guaranteed lifetime income option within drawdown
As part of Fidelity Adviser Solutions’ ongoing commitment to providing you and your clients access to an ever-growing choice of retirement solutions, they have launched a new guaranteed lifetime income option, within drawdown, for your pension clients.
Provided by Standard Life and exclusively available on the Fidelity platform, the plan is designed to address the challenge of ensuring retired clients have sufficient income over their lifetimes. In addition to providing the peace of mind that comes from having access to a guaranteed lifetime income, clients can also choose a Value Protection* death benefit option to potentially provide a lump sum for their loved ones when they die.
In contrast to conventional annuity products, the income generated from the Guaranteed Lifetime Income plan is paid into the client’s drawdown account and so only becomes taxable once it is withdrawn from the account. It can therefore support a tax-efficient withdrawal strategy – in any given tax year, the client has the flexibility to take as much or as little of the income generated as suits their needs. Any remaining income within the account can be retained as cash or reinvested to generate growth depending on the client’s goals.
The Guaranteed Lifetime Income plan is available to clients aged between 55** and 85 and who hold a Fidelity Flexi-access Drawdown Account. Quotes are available through Fidelity’s user-friendly online quote and apply portal.
The introduction of the new plan is the latest enhancement to their pension offering for you and your clients, following the launch of an innovative smoothed solution last year.
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