How are Secure Retirement Income (SRI) income payments made?Tue Sep 01 14:48:00 BST 2015
Income payments come from your Secure Retirement Income investment and will reduce the value of your savings.
Crucially though, even if your savings run out completely, we’ll keep paying your guaranteed income payments. Your guaranteed income payments won’t go down unless you switch out of Secure Retirement Income.
For an example, see page two of our leaflet What is Secure Retirement Income? (Opens new window)
Your guaranteed income payments are paid into your drawdown cash facility and you decide how much income you want to receive into your bank account each month.
What happens if I take more or less income than my guaranteed income payment?
We may have to make up the balance from other assets in your plan if your guaranteed income payments don’t cover the full amount of income you require in your bank account.
Conversly, if you don’t take the full amount of the guaranteed income payment paid into your drawdown cash facility as income to your bank account, the remainder will be left in the cash facility. It will remain there unless you or your adviser invest in other assets and may be used to pay any other charges.
Some things you should know...
It’s important to know that any guarantee is based on the ability of the issuing insurance company – in this case Scottish Equitable plc – to pay it. If, for example, that company no longer existed, then the guarantee(s) would be affected.
If we become unable to meet our liabilities, and if you’re habitually a UK resident when the contract starts, you’ll be covered by the provisions of the Financial Services Compensation Scheme (FSCS). Insurance business of this type is generally covered for 100% of the value of the whole claim, without limit.
You can get more information about compensation arrangements from the FSCS at fscs.org.uk(Opens new window)