Secure Retirement Income
Income security is important to a lot of savers. But so is having the flexibility to change an income strategy if circumstances change. Secure Retirement Income (SRI) gives savers both.
Secure Retirement Income gives you a guaranteed income for life, even if your savings fall to zero.
Benefits of SRI
- Guarantee a minimum income for life.
- Change income, or access savings, at any time.
- Income increases if the fund does well.
- Death benefits offer loved ones financial security.
- Secure Retirement Income explained PDF 205kb
- ARC client guide PDF 649kb
- One Retirement client guide PDF 111kb
How Secure Retirement Income works
How much secure income can an investor get?
We work out what guaranteed income a saver will get by multiplying their income base by a percentage that relates to their age when income starts.
Their income base is the value of their original investment plus any increases that they have accrued over time.
Your income base is £100,000 and you start taking and income at age 65
Your income rate at age 65
Guaranteed yearly income for life (£100,000 x 3.8%)
As at January 2017.
Only the investor’s income is guaranteed. Their savings can go down as well as up. You can see the age-related income percentages, and find our how your income base can grow in Secure Retirement Income explained.
Access to savings
Savers can open new Secure Retirement Income accounts, or access savings at any time. This can be useful if changes in a saver’s circumstances mean they need to change their income.
However, Secure Retirement Income is designed for long-term investment, and taking savings out will reduce future guaranteed income and the value of other benefits
Leave money to loved ones
Having worked hard to build savings, retirees will want to pass what they can to loved ones when they die.
With SRI a dependant can continue to receive an income at 50% of the investor's rate if the joint life option is selected. Alternatively, they can pass a lump sum to beneficiaries when they die.
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Guarantees are based on the ability of the issuing company to pay them. If the company no longer existed, then the guarantees above would be affected.