Do You Prefer Certainty?
Do you want the reassurance of receiving the same amount every month? Then a fixed pension is likely a good choice. The investment risk is taken on by the pension provider, which means you receive a fixed monthly amount. This amount is usually lower than with other pension types. Also, inflation is not taken into account.
HOW MUCH IS THE PAYOUT WITH A FIXED PENSION?
You’ll receive the same monthly amount for life.
Want to know how much that would be? Use the calculator for an estimate, or contact us—we’ll be happy to walk you through the options.
COMBINATION OF INVESTMENT AND GUARANTEE
Do you find the fixed payout a bit low or are you open to taking on a bit more risk? Then you can stay with StiPP or choose a combination option. You use part of your capital to purchase a fixed payout (guarantee), and the other part is invested in a variable pension. This way, you get both security and the potential for a higher return.
See ‘Calculate Your Pension’ for examples.
CAN I CHOOSE WHERE MY MONEY IS INVESTED?
Unfortunately, not yet. You choose the provider and their associated investment mix. There are significant differences between providers, and each one is required to disclose where they invest. So it’s always worth reviewing the product terms or investment portfolio.
HOW IS THE MONEY INVESTED?
With a fixed pension, the provider invests with low risk, primarily in government bonds. The investment returns are used to fund your fixed payout. There is little to no investment risk for you. The quote you receive from us will clearly state how the money is invested.
WHAT ARE THE RISKS OF A FIXED PENSION?
There is little to no investment risk with a fixed pension. You receive the same monthly amount for life. The investment risk lies entirely with the pension provider—not with you.
Keep in mind that this type of pension does not account for inflation. That means you may find it easy to cover your expenses at the start of retirement, but it could become more difficult over time as prices rise. Your pension does not increase with inflation.
CAN I SWITCH TO ANOTHER PENSION TYPE LATER?
Unfortunately, no. The law does not allow you to change your pension type later. So if you choose a fixed pension now, you cannot reverse that decision later on.
HIGH-LOW OPTION
Some providers offer a high-low pension. This is a payout where a higher investment risk is taken in the early years, followed by a lower risk later. A high-low structure is only allowed in combination with a fixed pension or a lower-risk variable pension.
Any Questions?
Need advice? Contact one of our experts—they’re here to help.
Call us during office hours at 020-4700920.
NO-OBLIGATION QUOTE
No questions for now and ready to request a quote?
Click the button below. Good luck with your decision!
