Conversion feature

Our Fixed Term Annuity includes a conversion feature. If exercised this means that the conversion value of the Plan can be used to purchase another retirement income product at the time, subject to eligibility and receiving appropriate financial advice.

The feature is automatically included when Plan Protection has been selected at the outset. Plan Protection returns a lump sum to your client's beneficiaries should your client die during the Plan term (tax treatment depends on individual circumstances).

How does the conversion feature work? 

The conversion feature allows clients to convert their existing Fixed Term Annuity to another retirement income product.

Common reasons for exercising the conversion feature are:

  • Death of a spouse, civil partner or financial dependant
  • Divorce or the ending of a civil partnership
  • Marriage or civil partnership
  • Redundancy (for those drawing a retirement income while continuing to work)
  • Change in financial circumstances leading to a new income need.

Risks of the conversion feature

Future income: The plan is designed to be held until the end of the term. If the conversion feature is exercised, the level of income from another retirement income product may be higher or lower than their current FTA income.

Conversion value: The conversion value may be less than the Guaranteed Maturity Amount and the original pension fund transferred to us.

For full details of the benefits and risks of our Fixed Term Annuity, please refer to our Key Features Document.