Retirement specialist company, Living Time, based in Cheltenham, is promising to restore battered income drawdown portfolios with a nil-income fixed rate annuity that returns up to 90%. They are offering returns of between 70% and 90% for clients aged 50 or above, who are prepared to lock their pension funds into a nil-income fixed rate pension annuity for 3, 5, 8, or 10 years.
The high returns are made possible through the company’s investment managers and underwriters Alico, who have been chosen because they will manage a portfolio of corporate bonds which are also guaranteed but they are also very good at managing the default risk so there is certainty that Living Time can stand by those guarantees.
Alico manages assets worth around £100 billion and are said to be ‘experts in the field of fixed income securities and corporate bonds’.
Take the example of a male aged 65, investing a £100,000 pension fund in the pension annuity contract for 10 years. He would have received a guaranteed return of £177,433.42. Over 3 years a £116.460.51 guaranteed return, over 5 years £131,037, and over 8 years, £156,985.
The contract is really aimed at advisers who have clients that drive Bentleys and Mercedes. This is something that allows those very high value clients to sleep well at night and stop hassling the IFA, claim Living Time.
This variation to Living Time’s fixed term annuities followed requests by advisers with disgruntled clients whose income drawdown portfolios had slumped around 30% in the crash since the summer.
Do you drive the right car? Might this annuity product be right for you? See a financial adviser if you think it might appeal.
