Angela’s perfect fit: a regular guaranteed income

Meet Angela

Angela is 60 and looking for a path to a fuller life

Angela is 60 and wants to give up work so she can spend more time with her grandchildren, but she is waiting for her state pension to kick-in when she turns 67.

Why this matters for Angela?

Bridges the gap to State Pension:
Angela needs income from age 60 to 67. The Guaranteed Income Plan provides a reliable annual income, helping her maintain financial stability until her State Pension and other benefits begin.

No investment risk:
The plan offers guaranteed income without exposing Angela to market volatility - ideal for someone prioritising security.

Bonus income:
Over the 7-year term, she receives £140,514 in total, including small bonuses, which enhances her income without added risk.

Tax-free cash for immediate needs:
Taking some money tax-free from her SIPP gives her flexibility to cover short-term expenses or enjoy her early retirement without triggering additional tax.

Family protection:
If Angela passes away during the term, any remaining funds can be passed to her family, offering peace of mind.

The Adviser's strategy

Bridging the Retirement Gap with a £160,000 SIPP

Angela's got £160,000 in a Self-Invested Personal Pension (SIPP) which she wants to use to maximise her income until she gets her state pension.

From tax-free cash to assured returns: Angela’s seven-year income plan

So, Angela’s adviser recommends she invests £120,000 into a Prudential Guaranteed Income Plan while taking £40,000 tax-free cash now. Her plan will pay her a guaranteed income of £19,958 each year until she turns 67. Giving her £139,706 over the seven years – totally guaranteed.

Maximum income option, £120,000 investment, 7 year term
	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Total
Guaranteed income	£19,958	£19,958	£19,958	£19,958	£19,958	£19,958	£19,958	£139,706
Bonus (not guaranteed)	0	£38	£77	£115	£154	£193	£231	£808

In this scenario, Angela receives £140,514 back from her investment in the Prudential Guaranteed Income Plan.

Use this strategy with your clients

This plan gives your clients a guaranteed return, but if the plan’s investments do better than the guaranteed return, the extra return gets added on.

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.