Anne’s tailored plan: maximum lump sum

Meet Anne

Anne is 65, has built up her savings, and is looking to retire.

She's retiring and wants to take 25% of her savings (£166,000) as tax-free cash to cover her income for the next few years. She'd like to invest some of her fund for growth, and likes the idea of receiving a lump sum, but she's quite risk averse.

Why this matters for Anne?

Security:
The Guaranteed Income Plan ensures Anne receives a fixed lump sum, giving her peace of mind and a reliable foundation for future income planning.

Growth potential:
She maintains exposure to market growth, which could enhance her overall retirement income.

Bonus upside:
The additional lump sum on top of the guaranteed amount rewards her for staying invested, adding value without extra risk.

Flexibility:
She retains access to her funds before the plan matures, allowing her to adapt if her circumstances or goals change.

Immediate needs covered:
The 25% tax-free cash withdrawal supports her short-term income needs without triggering additional liability tax.

The Adviser's strategy

Drawdown with certainty: Anne’s long-term income strategy

Anne's adviser recommends she moves into drawdown. She'll invest half of her remaining fund (£250,000) in a Prudential Guaranteed Income Plan for ten years, going for the lump sum option, which will give her a guaranteed payout of £369,128 at the end of the term.

From guarantees to growth: How Anne diversifies with confidence

Since she's got the security of her guaranteed lump sum, she'll invest the other half of her money into medium-risk assets so she can enjoy some growth potential without risking her whole fund.

Maximum lump sum option, £250,000 investment, 10 year term
Guaranteed lump sum	£369,128
Additional lump sum (not guaranteed)	£7,160

In this scenario, Anne receives £376,288 back from her investment in the Prudential Guaranteed Income Plan.

Use this strategy with your clients

This plan gives your clients a guaranteed lump sum – and the highest possible one. If the fund performance is in line with or better than expected, those wins are passed on to your clients as earned return, so they’ve got security without losing out on growth.

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.