Since the pension freedoms were introduced, there’s been a need for a truly innovative and value-for-money retirement income solution.

Secure Lifetime Income (SLI) was introduced to address this need. It can give you peace of mind, with a guaranteed income for life within a Self-Invested Personal Pension (SIPP). It could help cover your regular outgoings for the rest of your life, leaving you to choose how to invest your other funds within your SIPP for potential growth.

The Secure Lifetime Income comes with a number of benefits, including:

  • A lump sum death benefit

It includes a lump sum death benefit that starts at 75% of the purchase price and reduces monthly at twice the rate of income paid until it reaches zero. The death benefit is available for an initial set period which is determined by the level of income you receive. This provides valuable protection for your family whilst the death benefit applies.

  • Tax-planning opportunities

SLI is paid directly into the SIPP. This gives you the flexibility to decide how much income you take out and when, to meet your needs and help you manage tax.

  • A unique cash-in value

It includes a safety-net, cash-in feature, during the death benefit period. This allows you to cash in your SLI if your circumstances change significantly and you need a lump sum during this period.

The cash in value starts at 75% of the purchase price (the same as the death benefit) and reduces at the twice the rate of income paid until it reaches zero. The cash in value will never be more than the death benefit at the time you take it, but could be lower depending on market conditions.

  • A simple solution

It also offers simplicity, as SLI is held within your SIPP making it easier to manage your retirement income with a single P60 and portfolio view.

Eligibility

Secure Lifetime Income is available to people aged 55 to 90 who have funds held within a SIPP in flexi-access drawdown. Please be aware that Secure Lifetime Income is currently only available on selected SIPP platforms.

How can I purchase one of your products?

We don't offer Secure Lifetime Income directly, but you can purchase it through a professional financial adviser if they use a SIPP platform currently offering Secure Lifetime Income. Remember, you can find a professional financial adviser on thepfs.org and unbiased.co.uk.