Fixed-Term Annuities
Fixed-term annuities offer you flexibility in the way you draw your income in retirement.
They are designed to give you income certainty up to the age of 75 (currently) but without tying you into one product for the rest of your life, so you can adjust your retirement benefits at the end of each term.
Fixed-term annuities run for a fixed period of time, typically 10 years, during which you receive a guaranteed level of income, within certain limits set by the government. At the end of the specified term you receive a guaranteed maturity amount, which enables you to re-evaluate your options and pick another retirement income product whether for life or for another fixed term.
Find out more about annuities.
Why choose a fixed-term annuity?
- Flexibility, allowing you to take your annuity in bite-size chunks.
- It's a more modern approach to retirement planning.
- You can alter your income to meet any changes in your circumstances.
Suitable for:
Someone whose income needs may be very different later in retirement and want the flexibility to change their arrangements at the age of 75.
Annuity rates may rise or fall during that time, which could affect the income they then receive when they review their options.
The main benefits of a fixed-term annuity are
- Options – if your health deteriorates during the term of your annuity, you may become eligible to purchase an enhanced or impaired lifetime annuity at the end of the term, benefiting from the higher income they offer.
- Secure income - a guaranteed income until you are 75 and pre-agreed lump sum returned at that point.
- Value Protection – you have the option to protect your capital, so if you die before you reach the age of 75 any untaken income goes into your estate.
You can buy a fixed-term annuity from as little as £10,000 (net of tax free cash) and up until the age of 65. The quote you receive from TQ Invest will include both your guaranteed income until you reach the age of 75 and a guaranteed lump sum returned at the end of the term.
You need to be aware that when you reach the age of 75, annuity rates may be higher or lower than they currently are, and this will affect the new income you are offered. Other factors, such as the fact you will be older and possible deterioration in your health will work to your advantage, as life expectancy is used to benchmark any income offer made.
There is no cost to using TQ Invest to arrange your fixed-term annuity. We will organise the necessary paperwork on your behalf, making the process simple and easy.
TQ Invest can help you arrange a more flexible way of drawing income in retirement.
- Fixed-term annuities provide quotes based on you being in good health and maintaining a healthy life style, if this does not apply to you, then you may want to check how much income you could receive with an enhanced or impaired lifetime annuity.
- Your pension dies with you, unless you choose to take the option of Value Protection to build in death benefits.
- When you reach the age of 75, annuity rates may be higher or lower than they currently are, and this will affect the new income you are offered. Other factors such as your older age and possible deterioration in your health will work to your advantage, as life expectancy is used to bench mark any income offer made.
- You don't have to use all your pension pot to by a fixed term annuity, you can combine it with a lifetime annuity if you choose.
Choose TQ Invest to buy your fixed-term annuity because:
- There is no fee to use the TQ Invest Annuity Service, either to get a quote or for us to handle the administration of your annuity
- You can get a quote over the phone within a few minutes
- Our helpful and knowledgeable staff can guide you through the process
- We will organise and process all the paperwork for you
To find out what TQ Invest can offer you, get a quote
Next steps
- Call us on
0800 294 7221 - Our team will provide quotes from the whole of the annuity market.
- When you are ready we will process the application for you - it's as easy as that!
Other annuity options available to you:
Impaired/Enhanced Annuity
Ideal if you have suffered with illness or you have habits, such as smoking.
Our trusted providers
We choose providers we believe provide the best value. Here are some of our trusted providers:
Need help?
Call our team at TQ Invest on 0800 294 7221 to discuss your options or read some of the annuity FAQs.