Guaranteed Income for Life

by Mark Davies at The Fry Group

Guaranteed lifetime income, able to support lifestyle in retirement is a basic requirement, yet most of us are or will be relying on savings to supplement pensions with no guarantees.          

The wealthy should have sufficient to meet their needs, however even substantial capital sums erode over time by low interest rates, inflation and/or poor investments.

Annuities can guarantee income but they are expensive, offer no investment upside, give no capital access and normally die with the annuitant. 

The good news is that there are products, with associated investor protections, that provide guaranteed growth rate and additional investment growth potential until income is taken.  When/if the income is taken, a guaranteed lifetime income is available.  The guarantees are provided by a major international institution and backed by their assets.     

Income can start immediately or when required.  Capital, both before and after taking income is invested in equities, bonds and cash allocated based on individual needs and attitude to risk.  Resulting investment growth will increase for life the level of guaranteed income available, but there is no downside risk to the income level.  The capital value of the plan is fully available during the lifetime of the plan holder and is also available in full on death.

The products are not designed for early encashment so should be regarded as a long-term commitment.  

Most products are effective for UK Inheritance Tax reduction if held within a discounted gift settlement (DGS).  A DGS is accepted by HMRC as reducing UK Inheritance Tax liabilities.  Importantly unlike most gifts/trusts, which must exclude the giver from any benefit to be effective for UK IHT reductions, the guaranteed income can still be paid to the giver for their lifetime.  To obtain the favourable IHT treatment access to capital is not available, however as the structure is treated by HMRC in the same way as a type of annuity, this is taxed very favourably in Spain.         

Please note this is a precise of the key features and independent financial advice should always be taken.      


For further information Contact Mark Davies.  [email protected]

 Tel - 952 768 450.       


Comments (0)

There are no comments posted here yet

Leave your comments

Posting comment as a guest. Sign up or login to your account.
0 Characters
Attachments (0 / 3)
Share Your Location

Poll of the Week

Given the number of incidents involving drunk travellers on planes heading to/from Spain, should an alcohol limit be introduced in airports?

Latest Tweets

Deadline for talks set for the end of #September. #Airportstrikes #aena #Spain
Have you checked your wallets? The prize money has gone up! #Spain #prize
#Snow in parts of #Spain already! #Snowjoke
Follow Euro Weekly News on Twitter

Post Gallery

First two days of strike action suspended at Spain’s airports to allow 'space' for talks

‘Positive’ talks between Aena and unions but Spanish airport strikes not called off yet

Police hold Saudi royals at gunpoint in Marbella

Airport strikes in Spain loom as last-ditch talks scheduled

Juana Rivas faces prison despite handing sons over to father

EasyJet hoping new hand luggage in the hold option takes off on its flights

British couple devastated over Axarquia home demolition

How we can help tackle senior isolation

One dead in Malaga road  tunnel car crash