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.

  • 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.

Investors can start taking an income from age 55, or can use it to build up their secure income from age 45, so it’s ready when they need it.

Any guarantees are based on the ability of the issuing insurance company – in this case Scottish Equitable plc - to pay them. If, for example, that company no longer existed, then the guarantees it provides would be affected.

How much secure income can an investor get?

A saver's original SRI investment is called their income base. That income base won't go down, but can increase if their fund does well. We work out what income a saver gets by multiplying their income base by an income rate percentage determined by their age.

Here is an example:

Your initial investment was £100,000 and you start taking an income at age 65


Your income rate at age 65


Guaranteed yearly income for life (£100,000 x 4.05%)

As at March 2016.

Only the investor’s income is guaranteed. The value of their capital may go down as well as up.

Access to savings

Savers can open new SRI investments, or access savings, at any time. This can be useful if they need more of their savings than normal, or if they’re using SRI alongside flexi-access drawdown income and want to adjust the balance between the two.

However, SRI 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. And, if they select the guaranteed minimum death benefit, the amount passed on could be higher.

Want to know more?

See our leaflet What is Secure Retirement Income?(Opens new window), to find out how it helps savers achieve a stress-free retirement.

The following video is about Demand for flexible guarantees and has a transcript (see below).

Nick Dixon, Investment Director, talking at Money Marketing Interactive on the sources of demand for flexible guarantees.