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Post Info TOPIC: Is a Fixed Term Income Plan an annuity?


Billy

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Is a Fixed Term Income Plan an annuity?
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I am always asked this question



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Billy

Status: Offline
Posts: 98
Date:
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Strictly speaking a Fixed Term plan is not an annuity because there is no mortality cross subsidy but they are often called Fixed Term Annuities

They are technically a subset of pension drawdown

A fixed term income plan, sometimes called a fixed term annuity, allows
retires to access 25% tax free cash and, if needed, receive a guaranteed
income for a selected number of years. At the end of the term there is a
maturity amount which can be taken as cash, annuity or drawdown.

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