Meet Bill

Bill is 67 and suffered a heart attack a few years back. He’s recovered, has modified his lifestyle and his health is gradually improving. Despite his heart attack, he’s quite bullish about the future.

Bill has heard that he could qualify for a higher income because of his health if he buys an annuity, but he’d like to grow his pension pot and also take as much income as possible in case his health deteriorates further. 

Bill talks to his financial adviser, Ted, who suggests Bill considers the Flexible Income Annuity.

Ted explains that the Flexible Income Annuity could be just right for Bill. It allows Bill to keep his money invested and can pay a much higher income than a conventional annuity. This is because Bill can choose how much income he wants to take within certain limits. The upper limit is around 20% more than a conventional annuity. But that’s not all. Because of Bill’s heart attack the amount he could take would be even higher than this! Bill would also qualify for an uplift in income from a conventional annuity because of his heart attack, but it is unlikely to pay as much as Bill could take from the Flexible Income Annuity.

Ted does introduce a note of caution. The Flexible Income Annuity is dependent on the performance of the funds Bill chooses, so if his fund performs poorly his income could fall. However, whatever happens to Bill’s investments, his income can never fall below a minimum guaranteed level.

The attraction of a significantly higher income, plus the prospect of growing his income further if his funds perform well, means the Flexible Income Annuity is precisely what Bill is looking for.