Prudential Guaranteed Income Plan now available for new and existing Prudential Retirement Account clients.
About the Prudential Guaranteed Income Plan
Designed primarily for those clients who are phasing into, or are in the early years of retirement, our Guaranteed Income Plan is available for new Prudential Retirement Account clients and Trustees of UK registered pension schemes, particularly Self-Invested Personal Pension (SIPP) schemes, to invest on behalf of their scheme members. The plan can also be used by younger scheme members looking to secure a guaranteed rate of return on their pension savings.
The Prudential Guaranteed Income Plan is an income-producing product that can help meet client's retirement income planning needs. It also offers a guaranteed lump sum option, or a combination of income and lump sum guarantees.
Using part of their pension fund to purchase a fixed term income while the rest of the pot remains invested, can work for clients looking for a phased retirement – to top up their income levels – but also for clients looking to retire now who don’t want, or need, to commit their pension fund to a lifetime annuity.
It can complement other retirement solutions, as part of a structured approach, and balances the need for certainty of income or returns and financial freedom. And the combination of income and/or lump sum guarantees, as well as a cash-in option and a death benefit, provides reassurance and peace of mind.
The Guaranteed Income Plan is backed by an investment strategy within the Prudential Assurance Company Limited (PAC) With-Profits Fund focused on fixed income assets. This approach aims to provide stability to support the underlying income and lump sum guarantees and provides potential for the plan to pay a little more income and / or lump sum than the guaranteed amounts.
As a financial adviser, you can instruct Trustees to purchase a Guaranteed Income Plan on your client’s behalf.
Options available
Maximum income
- A guaranteed income will be paid for the duration of the Plan term.
- We’ll never pay less than this but some years we might be able to pay a little more.
- There won’t be any money left at the end, but this option provides the highest guaranteed income.
Maximum lump sum
- A guaranteed lump sum will be paid at the end of the Plan term.
- We’ll never pay less than this but we might be able to pay a little bit more.
- There won’t be any income paid, but this option provides the highest guaranteed lump sum.
Combination (Regular income with lump sum)
- We’ll guarantee to return up to the full amount of the investment at the end of the term and will provide a guaranteed income in addition to this.
- The guaranteed income will be less than under the maximum income option.
- We’ll never pay less than the guaranteed income but some years we might be able to pay a little more.
- We’ll never pay less than guaranteed lump sum selected at outset but we might be able to pay a little bit more.
Contact your account manager for information about which schemes will accept Prudential Guaranteed Income Plan as an investment
Key elements
Payment date
- Income is paid to the scheme.
- Payment dates depend on the date funds are received and the payment frequency e.g. the member sets up income monthly in arrears – funds are received and the Plan is set up on 1 March, so the first income payment will be made on 31 March.
- There is no option to select a specific payment date.
Features
Risks
Case studies
Building trust and long-term relationships is part of your everyday. Whether your client is looking for a guaranteed income, a lump sum at the end of the term, or a combination of both, the Prudential Guaranteed Income Plan offers flexible options to suit different financial needs.
Explore the case studies below to see how each option can work in practice, helping to deliver confidence and certainty for your clients.
List of schemes
Contact your account manager for information about which Schemes will accept Prudential Guaranteed Income Plan as an investment.
| SIPP Scheme Name | Provider / Operator | PSTR |
|---|---|---|
| @SIPP | @SIPP | 00605760RT |
| A J Bell Investcentre SIPP | A J Bell | 00605674RH |
| Aberdeen Self Invested Personal Pension Scheme | Aberdeen | 20008277RL |
| Curtis Banks 2005 SIPP | Curtis Banks | 00605461RH |
| Curtis Banks Full SIPP | Curtis Banks | 00605778RB |
| Curtis Banks SIPP | Curtis Banks | 00740779RV |
| Dentons SIPP | Dentons Pensions | 00616046RN |
| Fusion SIPP | Curtis Banks | 00802858RH |
| Fusion Wealth eSIPP | Curtis Banks | 00720056RZ |
| Horizon SIPP | Curtis Banks | 00715833RP |
| IPM Personal Pension Scheme | IPM | 00605673RE |
| MasterSIPP Pooled | Suffolk Life t/a Curtis Banks | 00690610RC |
| MasterSIPP Protected Rights | Suffolk Life t/a Curtis Banks | 00690610RC |
| MJ Field SIPP | XPS | 00605667RM |
| Montpelier Full SIPP | Curtis Banks | 00623075RB |
| Organon SIPP | Organon | 00720602RS |
| Pathfinder Private Pension | Curtis Banks | 00605786RW |
| SJP SIPP | Curtis Banks | 00605638RD |
| Smart SIPP | Suffolk Life t/a Curtis Banks | 00690610RC |
| Talbot & Muir 2016 SIPP | Talbot & Muir | 00830023RQ |
| Talbot & Muir Elite Retirement Account | Talbot & Muir | 00605717RZ |
| Temple Quay SIPP | Curtis Banks | 00605660RY |
| The Curtis Banks 2002 SIPP | Curtis Banks | 00605461RH |
| The Invinitive UK SIPP | Invinitive | 20007274RW |
| The Minerva SIPP | InvestAcc | 00605996RN |
| The Options SIPP | Embark | 00712182RN |
| The Pointon York SIPP | Curtis Banks | 00605325RV |
| The Premier Single Investment Trust | D A Phillips & Co Ltd (DP Pensions) | 00605999RW |
| The Premier SIPP | Talbot & Muir | 00605693RM |
| The Premier Trust | D A Phillips & Co Ltd (DP Pensions) | 00605999RW |
| The Prudential Pension Scheme | M&G | 00827946RB |
| The PY SIPP | Curtis Banks | 00605328RH |
| The XPS Self Invested Personal Pension | XPS | 00605307RT |
| The XPS SIPP | XPS | 00692718RF |
| Westerby SIPP | Westerby Trustee Services Ltd | 00605704RH |
| Yorsipp Limited | Yorsipp | 00605762RC |
| Your Future SIPP | Suffolk Life t/a Curtis Banks | 00690610RC |
Key documents
Client and trustee documents
Tools & calculators
Prudential Guaranteed Income Plan Calculator
This tool allows you to see the guaranteed income and/or lump sum that can be provided by our Guaranteed Income Plan for a range of different scenarios.
Costs and charges
The charges we take are factored into the calculation of the guaranteed benefits, which we confirm at the start of the Plan. These charges cover various costs associated with setting up and looking after the Plan, for example the cost of administration, investment management and providing the guarantees.
