Features and benefits

Eligibility

Your client must be

  • Is at least age 55 at entry
  • Is aged less than 75 at entry

Income choices

  • Level payments or payments that increase at a fixed rate per year
  • Index-linked annuities increase or decrease in line with changes to the Retail Price Index (RPI)

Features

  • Conventional lump sum contract where the annuity is payable for life
  • Single life or joint life
  • Guaranteed period
  • Various payment frequencies: monthly, quarterly, half yearly, annually (paid in advance or arrears)
  • Income paid level, fixed increase or RPI
  • Ability to convert from an existing unitised annuity

Aims

  • To provide your client with a taxable income on fixed terms for the rest of their life
  • To give your client choice of providing income for their spouse or dependent after death in exchange for a smaller taxable income
  • To give your client the choice of taking tax-free cash sum at the start of the plan in exchange for a smaller taxable income

Bid/offer spread

  • None

Policy fee

  • We allow for the charges when we calculate the amount of pension we offer you

Contributions

  • Internal - no minimum
  • External - £10,000 minimum

Annuity options

  • Fixed annuity
  • Increase by percentage or  vary in line with RPI
  • Conversion from unitised annuity

Restrictions

  • Once set up, the plan can't be cashed in, and the basis of the income can't be changed

Reporting

  • Annual P60 confirming tax paid and usage of lifetime allowance

Tax

  • Income will be treated as earned income and will be taxable
  • If your client decides to take a cash sum, it's normally tax-free
  • We'll deduct tax from each income payment before it's paid
  • HM Revenue & Customs will notify us of the relevant tax allowances and we'll take these into account in working out how much tax to deduct
  • Tax rules may change in the future

Risks

  • Once it's set up, your client can't cash in their plan or normally change the basis of their income, even if their circumstances change
  • When your client dies, their income will normally stop. The total amount paid out may be less than the amount that was originally invested
  • If your client chooses a pension that doesn't increase or increases at a rate lower than the future RPI, inflation could reduce what they can buy with their income

As part of the Lloyds Banking Group, Scottish Widows is proud to be an Official Provider of the London 2012 Olympic and Paralympic Games.

Copyright ©2012 Scottish Widows | Copyright, companies, legal and privacy information |  Accessibility | Scottish Widows Investment Partnership | Site map

Important Information about Scottish Widows

Information within this site is intended for UK authorised and regulated financial advisers only. It is not intended for onward transmission to retail customers and should not be relied upon by any other person. If you are not an adviser please return to our consumer site.

Scottish Widows is not responsible for the content of third party websites. Separate terms apply to the use of third party websites and Scottish Widows does not warrant the accuracy, reliability, availability or otherwise of these sites.

By using this site you agree to our terms & conditions of use. Please read our copyright, companies, legal and privacy information. We may record and monitor calls to help us improve our service.

Scottish Widows plc, registered in Scotland number 199549. Registered office in the United Kingdom at 69 Morrison Street, Edinburgh EH3 8YF. Telephone: 0131 655 6000. Scottish Widows plc is authorised and regulated by the Financial Services Authority. Our FSA register number is 191517.

Scottish Widows Unit Trust Managers Limited, registered in England and Wales number 1629925. Registered office in the United Kingdom at Charlton Place, Andover, Hampshire SP10 1RE. Telephone: 0845 300 2244. Scottish Widows Unit Trust Managers Limited is authorised and regulated by the Financial Services Authority. Our FSA register number is 122129.

Clerical Medical Investment Group Limited, registered in England and Wales number 3196171. Registered office in the United Kingdom at 33 Old Broad Street, London EC2N 1HZ. Authorised and regulated by the Financial Services Authority. Our FSA register number is 181655.

CMI Insurance Company Limited. Scottish Widows is a trading name of CMI Insurance Company Limited. CMI Insurance Company Limited, registered in Isle of Man number 33520. Registered office in the Isle of Man at Clerical Medical House, Victoria Road, Douglas, Isle of Man, IM99 1LT.

HBOS Investment Fund Managers Limited, registered in England number 941082. Registered office in the United Kingdom at Trinity Road, Halifax, West Yorkshire HX1 2RG. HBOS Investment Fund Managers Limited is authorised and regulated by the Financial Services Authority.

St Andrews Life Assurance plc, registered in England and Wales number 3104670. Registered office in the United Kingdom at 33 Old Broad Street, London EC2N 1HZ. Authorised and regulated by the Financial Services Authority. Our FSA register number is 189101.

Scottish Widows Bank plc, registered in Scotland no. 154554. Registered office in the United Kingdom at PO Box 12757, 67 Morrison Street, Edinburgh EH3 8YJ. Scottish Widows Bank plc is authorised and regulated by the Financial Services Authority. Our FSA register number is 201601. The main business of Scottish Widows Bank is arranging, entering into and administering mortgages and accepting deposits.

Browser Warning: your browser is outdated or not fully supported on this site. Visit our browser help page for a list of supported browsers.
close