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Fixed Term Annuities

A Fixed Term Annuity (FTA) is an investment within a drawdown plan which provides guaranteed income payments for a set number of years.

At the end of the term there will be a guaranteed maturity payout which can be reinvested in an annuity or a drawdown plan.

The policy can be set up on a joint life basis and with a guaranteed income period or value protection option. This means that on death before the policy matures, income payments will continue to a surviving spouse / partner or a lump sum less 55% tax can be paid depending on the options chosen.

At present the following companies offer Fixed Term Annuities:

  • Aviva
  • Just Retirement
  • LV=
  • Prime Time

Fixed Term Periods

Most providers offer two types of Fixed Annuity. A plan for a set number of years, (minimum term of 3 years), or a plan to age 75. Both plans have the following features:

  • Guaranteed income to the end of the selected period, subject to legislative limits
  • Choice of income level at outset, from nil up to the maximum allowable under current legislation
  • Guaranteed Maturity Amount at the end of the plan term
  • Choice of flexible death benefits

Advantages and Risks


  • If your future circumstances change you have the flexibility to choose the appropriate options when your plan reaches maturity
  • You may benefit from the opportunity potentially to obtain a higher income in the future if your health has worsened during the term of your Living Time Plan
  • Fixed Term combines some of the advantages annuities with some of the advantages of drawdown


  • If you die before the end of the plan term the maturity amount will not be payable unless you have selected death benefit options.
  • The amount of annuity income will be dependent upon annuity rates at that time, which may be better or worse than current rates
  • Fixed Term plans are NOT suitable for those who want the certainty of a guaranteed fixed income for the rest of their lives
  • Past investment performance provides no guide to future performance
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