A guide for customers

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A guide for customers

Pension Annuity

Guaranteed income

for life

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Call 01737 233297 or visit www.justretirement.com Pension Annuity

I want a secure income that is guaranteed to be paid for life, and I’m not in the best of health.

How can I be sure I’ll get the most out of my pension savings?

I’m looking for the best possible level of guaranteed lifetime income, and want to make sure that my other half is comfortable and secure after I’m gone.

I want the security of a regular income that is guaranteed for life, but also need access to a lump sum so I can pay off debts when I retire.

If you’re thinking...

I like the idea of guaranteed lifetime income, but want to be sure that I’ll get full value for money.

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...our Pension Annuity could be right for you.

If you need a guaranteed income for life, you may want to consider the Just Retirement Pension Annuity.

• We are experts in underwriting, and will take your health and lifestyle into account to help optimise the level of income you receive.

• You can configure your annuity so that it provides you with the benefits that are best suited to your personal and family circumstances, with options that help you look after your loved ones and protect the value of your pension savings.

• Once your income has been set up, the income will automatically be paid to you for the rest of your life. There’s no need to worry about investment performance, and no need to manage your annuity throughout retirement.

Contents

Shopping around for a guaranteed

income for life 4

Underwriting –

the Just Retirement difference 6

Accessing a lump sum 8

Tailoring your Pension Annuity 10 Protecting your dependant 10 Protecting the value of your

pension savings 11

Protecting yourself against the effects

of inflation 12

Applying for a Pension Annuity 13

About Just Retirement 14

If you want to combine a guaranteed income for life with the ability to access some of your pension savings flexibly, the Pension Annuity can be used alongside a flexible retirement solution. For further information about this, please speak to your financial intermediary.

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Shopping around for a guaranteed income for life

The Just Retirement Pension Annuity is designed to provide you with a guaranteed income for life which is unaffected by any future changes in

interest rates or stock market values. It also offers a range of options that help you look after your loved ones and protect the value of your pension savings.

When choosing a guaranteed income for life product, it’s really important to shop around to find the best available solution to meet your needs. By following the steps below, you’ll be able to work with your financial intermediary to

request a personal quotation. This will enable you to see how our Pension Annuity compares with the products offered by other providers.

First, tell us about your health and lifestyle.

We are underwriting specialists, and will take your lifestyle factors and any medical conditions into consideration to help enhance your retirement income.

We can take more than 1,500 conditions into account – ranging from lifestyle factors such as high blood pressure or cholesterol, through to serious medical conditions such as cancer and heart disease – and we believe that everyone should be individually underwritten.

For an accurate quotation, you can provide us with comprehensive details of your lifestyle and medical history by completing a full medical questionnaire.

Alternatively, if you prefer, you can give us a few basic details for an indicative quotation.

Please see pages 6 and 7 for further information about underwriting.

Next, tell us whether you want to take a lump sum from your pension savings.

You are able to take a tax-free lump sum payment of up to 25% of the value of your pension savings.

If you need access to a larger up-front payment, you can choose to take an additional lump sum which will be subject to tax at your marginal rate.

Please see page 8 for further information about taking a lump sum.

1. Your health and lifestyle 2. Access a lump sum payment

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Once you’ve told us about yourself and what you want the annuity to do for you, we’ll provide you with a personal quotation.

This will show you how much income you might expect to receive based on an assumed value of your pension fund, your health and lifestyle conditions, and the combination of options you have selected.

To help you be sure you’re choosing the right combination of options, you can ask for several different quotations to see how much difference each option makes to the amount of income payable.

Once you’re happy with the level of income and the benefits you’ve selected, you can go ahead and apply for your annuity. Please see page 13 for further information on how to do this.

Next, tailor your annuity so it meets your individual needs.

The Pension Annuity can be configured to match your personal outlook and family circumstances:

• Do you want to take care of a dependant, for example your spouse or civil partner, in the event of your death?

• Do you want to protect your pension savings so that you get full value from your annuity?

• Do you want your income to continue to be paid if you die soon after taking out your annuity?

• Do you want to protect your income from the effects of inflation?

Please see pages 10 to 12 for further information on how to personalise your benefits.

The Pension Annuity can be used alongside a flexible retirement solution to provide a balance of security and flexibility. For example, you can specify the amount of guaranteed income for life you need from the Pension Annuity to cover your basic expenses, and keep the remainder of your pension savings invested to access them as and when you need to. You should be aware that the value of invested pension savings can go down as well as up and you may not get back the amount you originally invested.

To arrange a Pension Annuity quotation, please speak to your financial intermediary. If you agree to pay them a charge for the advice or assistance they provide, details of this will be included in your quotation.

3. Tailor your annuity 4. Finalise your benefits

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Underwriting –

the Just Retirement difference

We are underwriting specialists, and will take your health and lifestyle conditions into consideration whenever appropriate to help enhance the guaranteed income for life you receive. This may mean that you receive a higher level of income in retirement than you could have received elsewhere.

Our underwriting expertise

We have already helped more than 140,000 customers to improve their income in retirement, and we continually invest in research which improves our understanding of the conditions that qualify for enhancement.

We are able to take more than 1,500 conditions, or combinations of conditions, into account. Lifestyle factors such as smoking could mean you are entitled to an enhanced income, as well as relatively mild health conditions like high cholesterol. Serious medical conditions such as cancer and heart disease could enhance your income still further.

It’s really important that you provide us with your full medical history and lifestyle. This will enable us to

underwrite accurately and provide you with the appropriate level of income for your circumstances.

It’s probably easier than you think to get an enhanced guaranteed income for life

We believe that everyone should be individually underwritten, in order to achieve a personalised income that is tailored to their circumstances.

There are a range of factors that could enable you to receive an enhanced income, for example:

• Where you live, your height and weight, blood pressure and cholesterol through to how much you smoke or drink.

• Conditions that you may or may not take medication to manage, such as asthma or diabetes.

• More serious conditions that you may have received treatment for, such as heart attack or cancer.

It only takes a few minutes to give us the necessary details about your lifestyle and medical history to find out if you could receive an enhanced guaranteed income for life.

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The difference underwriting can make

Underwriting can make a big difference to the level of guaranteed income for life you receive.

The table below shows a range of different income enhancements for an individual aged 65 with a £50,000 pension pot.

(These examples are all based on an RH2 7RT postcode, with an assumed facilitated adviser charge of 2.2%,

paid monthly in advance, with a five-year guarantee, no escalation, no Value Protection and no Dependant Protection.

The rates are compared to the lowest standard annuity rate offered via The Exchange from Iress on 17.04.15) An individual who is 6’ 1”

tall and weighs 17st 11lbs.

An individual who was diagnosed with Type 2 diabetes one year ago, supplied HbA1c readings, and is currently prescribed one daily medication.

An individual who was diagnosed with Stage 3 bowel cancer just over two years ago, who was treated with surgery and chemotherapy.

Case study 1 Case study 2 Case study 3

Up to 15% Up to 25% Up to 40%

Enhancement (above

lowest standard annuity): Enhancement (above

lowest standard annuity): Enhancement (above lowest standard annuity):

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Accessing a lump sum

The Pension Annuity gives you the ability to access a lump sum at the point you retire.

Please remember that you can only take lump sums with our Pension Annuity when it is being set up. Once your policy is in force, you will only be entitled to the benefits payable under the policy. Also, please remember that tax treatment depends on individual circumstances and may be subject to change in the future. Please speak to your financial intermediary if you want to discuss accessing a lump sum from your Pension Annuity.

Absolutely. If you haven’t already taken a tax-free lump sum from your existing pension provider, you can choose to receive a tax-free lump sum payment of up to 25% of the value of your pension savings.

Can I get a tax-free lump sum when I’m setting up my annuity?

No problem. With the Pension Annuity you can choose how much you want to receive, although you need to leave at least £2,000 with which to purchase your guaranteed income for life.

Any excess over 25% of the value of your pension savings will be subject to tax at your marginal rate.

What if I need to access a larger amount?

You will be left with less pension savings with which to purchase your income, which means you’ll be left with a lower level of income than if you hadn’t accessed a lump sum payment.

How does this affect my retirement income?

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Dependant protection

By selecting the dependant protection option, you can choose for all or part of your guaranteed income for life to be paid to a dependant in the event of your death.

This could be your spouse, civil partner, or someone else who is financially dependent on you.

You can specify how much they will receive – up to 100%

of your income level.

You have the peace of mind that this will continue to be paid throughout their lifetime.

Tailoring your plan

Protecting your dependant

The Pension Annuity enables you to protect your spouse or registered civil partner in the event of your death.

Please bear in mind that if you select one of these options it will reduce the annual level of guaranteed income you receive. Also, please remember that tax treatment depends on individual circumstances and may be subject to change in the future.

I want to make sure my other half is comfortable and secure after I’m gone.

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Value protection

By selecting the value protection option, you can protect a chosen percentage of your pension savings so that when you die any unused portion will be paid as a lump sum to a beneficiary or beneficiaries.

For example, if you select 100% value protection, you’ll be protecting the full remaining fund value after any tax-free lump sum and any taxable lump sum have been deducted. With this option, you are guaranteed to at least get your money back.

If you are setting up a joint annuity (together with your spouse, partner or another dependant), you can ask for the lump sum to be paid:

• after your own death, or

• after you have both died.

When calculating your value protection payment, we will take into account all income payments you have already received. If you’ve already received at least your chosen percentage, no value protection payment will be due.

Guaranteed payment period

Alternatively, by selecting the guaranteed payment period option, you can guarantee your income so that in the event of your death it will continue to be paid in full for the remainder of your chosen period.

You can normally choose any annual period between one year and 30 years, although if you have a scheme pension you’ll be limited to a maximum of 10 years. If you live longer than your chosen guarantee period, the guaranteed income will continue until your death.

Please note that this option is different from dependant protection, which is paid for the full lifetime of

your dependant.

Protecting the value of your pension savings

If you are concerned that you may not get full value from your annuity, you can select one of the following options to protect the value of your pension savings.

We want to be sure we’ll get fair value from our pension savings.

I want my income to continue to be paid for a certain period if I die soon after taking out my plan.

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Please remember that the cost of income escalation will depend on individual circumstances. If you are interested in income escalation, please speak to your financial intermediary.

If you’re worried about the effects of inflation on your guaranteed income for life, you can select an income escalation option.

There are a number of ways you can choose to protect your income:

• You can choose for your income to increase by a fixed amount each year (up to 8.5%).

• Alternatively, you can link your income to changes in the Retail Prices Index (RPI). The RPI measures changes in the cost of living by calculating variations in the price of a basket of retail goods and services.

Please bear in mind that if you select an income escalation option, the annual level of income you receive in the early years of your Pension Annuity will be reduced compared to an annuity where the income stays the same each year. The exact reduction will depend on your individual circumstances.

Protecting yourself from the effects of inflation

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To apply for your annuity, please complete the Application Form enclosed with your personal quotation and return it to us. If you only provided basic health and medical details when requesting your personal quotation, you’ll also need to complete a full medical questionnaire as part of the application process.

Once we’ve received this further information, we may change the amount of income we are able to pay you.

If this is the case, we’ll provide you with a new quotation.

When we receive your Application Form, we’ll contact your existing pension provider to arrange for your pension fund to be transferred to us. We may also contact your GP to verify the medical information you have provided. It usually takes between one and three weeks for us to receive the fund value. If there are any delays, we’ll proactively chase your existing provider to ensure your fund is transferred as quickly as possible.

We’ll normally start paying your income within three working days of receiving the fund from your existing pension provider. If you have more than one provider, we’ll start paying your income as we receive each individual fund.

Where specified, we will also facilitate your financial intermediary’s charge as we receive the fund value from each provider.

Once your annuity is up and running, we’ll automatically pay the agreed amount of income at your chosen frequency. If you have purchased your annuity using more than one pension fund, we’ll combine the different income payments so they are paid into your bank account all in one go, deducting income tax where appropriate. Your income payments are guaranteed for life.

We’ll also send your policy documents to you, including a final quotation. This will provide final confirmation of your income based on the actual fund value we have received from your existing pension provider(s).

Applying for a Pension Annuity

Once you’re happy with the level of income and the benefits you’ve selected,

you can go ahead and apply for your annuity. The diagram below explains

how the application process works.

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About Just Retirement

Just Retirement is one of the UK’s leading providers of retirement income solutions. As our name suggests, we are completely focused on meeting the needs of people approaching retirement or in retirement.

We recognise that everyone’s retirement needs are different. Some people want a regular income, with the security of knowing that it’s guaranteed to be paid for life.

Others prefer to keep control of their pension savings, with the flexibility to adapt their income throughout retirement or take lump sums when they need to. Many people want a combination of these things.

We are underwriting specialists, and will take full account of our customers’ personal circumstances – including their health and lifestyle – whenever appropriate. This can play an important role in optimising their retirement income.

Our commitment to treating customers fairly is embodied in all aspects of our service, from the information we provide, during the application process and throughout our customers’ retirement.

Just Retirement – quick facts

• We were established in 2004.

• We are a Public Limited Company, listed on the London Stock Exchange.

• We were awarded a tenth consecutive ‘5-star’

accolade in the ‘Life and Pensions’ category at the 2014 Financial Adviser Service Awards.

• We have already provided a better retirement income for more than 140,000 retirees.

Address and registered office:

Just Retirement, Vale House, Roebuck Close,

Bancroft Road, Reigate RH2 7RU Tel: 01737 233297

Email: [email protected]

Lines are open 8.30am to 5.30pm, Monday to Friday.

Calls may be monitored or recorded.

Pension Annuity

Key Features

This brochure outlines the key features of the Just Retir

ement Pension Annuity.

The Financial Conduct Authority is a financial services regulator. It requires us, Just Retirement, to give you this important information to help you to decide whether our Pension Annuity is right for you. Y

ou should read this document carefully so that you understand what you ar buying, and then keep it safe for futur e

e reference.

Please read this document together with:

• Your personal quotation showing the benefits available to you.

• The Pension Annuity policy conditions.

If you have any questions please speak to your financial intermediary.

Contents Key features of the Pension Annuity

Its aims 2 Your commitment 2

Risks 2 2

Questions and answers Further information 3 Glossary 5

Compensation 67

What to do if you are unhappy About Just Retirement Limited 7

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Further information on the Pension Annuity can be found in the Key Features document.

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Just Retirement Limited. Registered Office: Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU. Registered in England Number 05017193. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Please contact us if you would like this document in an alternative format. All copyright works and trade marks are owned by their respective proprietors.

07/2015

Choosing what to do with your pension savings is an important financial decision, and you can often get more from your money by shopping around. Pension Wise is a government service that can offer you:

• Tailored guidance – online, over the telephone or face-to-face.

• Information about the tax implications of different options.

• Tips on getting the best deal, including how to shop around.

To receive free, impartial guidance from the Government, go to www.pensionwise.gov.uk or call 030 0330 1001.

For more information contact:

Telephone: 01737 233297

Lines are open Monday to Friday, 8.30am to 5.30pm.

Alternatively you can email us:

[email protected]

Or log onto our website for further information:

www.justretirement.com