AEGON Secure Lifetime Income (ASLI)
Are you over 60 with more than £15,000 that you wish to invest to provide you with a guaranteed tax-free income?
We can offer you a guaranteed income drawdown for life (with the potential to increase) and you will have access to your capital at any time, with AEGON.
This means that you will never run out of income as it is guaranteed and paid for life. Every year your income could be increased based on the best of 12 previous monthly fund values.
The guaranteed income is tax free for life, based on your original contribution*.
You can choose which fund to invest in, which gives you exposure to the performance that can be received by stocks and shares. It is guaranteed that your income will never go down but your income can go up depending on the performance of the funds. We have suggested a standard or default fund for your investment which is 80% in fixed interest and 20% in stocks and shares. It is free to switch to any other fund and you have a choice of over 90 different funds.
Again, your income is not at risk or affected by stock-market falls.
The minimum age for this is 60 and the minimum investment is £15,000.
There is an age-related income scale. A typical example…
A 64-year-old would receive a return of 4% per annum. This is the net (after tax) payment. So if you invest £20,000, you would receive £800 each year.
For a basic rate tax payer (20%), an investment of £20,000 in a bank or building society account would need to get 5% as a return because they pay you £1,000 minus the 20% tax (£200) and you receive £800. A high rate tax payer would need a 6.67% return from the building society to match this return. The best online easy access account we found on Money Supermarket was offering 3.10% for July 2011.
An annuity using your funds would provide a basic rate tax payer a net payment of 6.04% (the exchange 1/7/2011). This income would not increase and more importantly, you lose access to your capital / investment.
On death you would get back either whatever you put in, minus any income that you had received or the value of the fund, whichever is the higher. There is no other guarantee on your fund value.
Taking any additional withdrawals will affect the guarantees and may result in tax being payable.
- Guaranteed income for life – tax-free
- Money back guarantee on death
- Access to your capital
- Tax-free income*
- Income that could increase
We will not provide you with advice or a personal recommendation. If you would like further details and a specific quotation or example, please return our enclosed form. I will provide you with information only and co-ordinate the paperwork for you.
You are welcome to call for further details and information: 01622 664440.
*The only time there may be some tax to pay is if your income increases.