Living Time launches guaranteed Sipp option

Living Time has launched a guaranteed option for its Sipp clients to protect income and the underlying investments in pension funds from market volatility.

The Personal Investment Plan (PIP) will offer a guaranteed income and maturity lump sum.

It is aimed at both pre-retirement clients looking to guarantee their pensions and at retirement clients looking to secure their income drawdown facilities.

‘This is a sleep well at night pill that advisers have been asking us for in these troubled times,’ said Dave Harris, managing director of sales and marketing at Living Time.

The PIP must be taken out for at least three years and is available to a maximum age of 75.

Living Time said that a £100,000 investment into the PIP by a 65-year-old man would repay £125,806 into the pension five years later, provided no income is taken.

Alternatively the client could take £4,445 a year in income and receive a £100,000 maturity payout after five years.