Secure Lifetime income

Secure Lifetime Income (SLI) is our solution that delivers a guaranteed income producing asset which could optimise drawdown portfolio outcomes when included within the SIPP.

As part of a retirement income plan, SLI could improve client outcomes in a wide variety of circumstances.

Creating more efficient retirement plans

The guaranteed income delivered through our SLI solution is free from sequence risk and is uncorrelated to the other assets in the drawdown portfolio.

SLI is built upon the long established and proven concept of pooling longevity risk with other retirees. This means SLI could generate higher income than conventional bonds, as the income from SLI assumes bond-like returns plus mortality credits.

As a result, the withdrawal rate on the rest of the drawdown portfolio could be lower. This enables the portfolio to produce:

  • higher long-term values, to increase legacy provision; and/or
  • more sustainable or higher income.

Constructing portfolios with a guaranteed income producing asset could help evidence that avoiding foreseeable harm has been considered in the advice process.

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.

Our partners

We’re working with a range of partners to bring you Secure Lifetime Income. Find out more here.