Secure Lifetime income
Secure Lifetime Income is a new option for enhancing drawdown portfolios. Sitting innovatively within a client’s chosen drawdown arrangement, Secure Lifetime Income provides an element of guaranteed income alongside their retirement income portfolio.
As part of a retirement income plan Secure Lifetime Income can improve client outcomes in a wide variety of circumstances.
Creating more efficient retirement plans
Secure Lifetime Income is built upon the long established and proven concept of pooling longevity risk with other retirees. The guaranteed income it provides is also free from sequence risk and uncorrelated to the assets in the portfolio.
This means Secure Lifetime Income can use less capital to generate a given amount of income compared to relying purely on a favourable sequence of returns from the capital markets.
The freed-up capital within a client’s retirement plan can then be used to:
- support more income
- improve legacy provision
- produce a more sustainable portfolio.
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Secure Lifetime Income offers benefits to you and your clients
- SLI complements your existing investment strategies – an alternative low risk asset that can be used when configuring drawdown portfolios to help enhance client outcomes.
- Business efficiency – a fully digital solution that ensures all your clients assets are held in one place, keeping set-up and ongoing costs to a minimum.
- Sequence risk management – an additional option for reducing exposure to sequence risk and income volatility, an important consideration for many clients in these uncertain times.
- Reduce the impact of longevity risk – an efficient way to transfer some of the longevity risk away from your client’s portfolio, freeing up capital which can be directed towards other objectives.
- Flexibility and efficiency – the monthly payments can be used immediately to support a client’s lifestyle or retained within their drawdown arrangement and reinvested.
- Simplicity – Secure Lifetime Income sits within your client’s SIPP alongside their other retirement savings and investments, so everything is under one roof.
- Personalised guaranteed income for life – Secure Lifetime Income takes account of your client’s individual health and lifestyle to provide a personalised guaranteed income.
- Legacy provision – In addition to enhancing a clients overall legacy provision Secure Lifetime Income also provides protection against early death by offering an automatic lump sum death benefit for a set period.
- A cash in option – Should your client’s circumstances change significantly during the set cash-in value period.