The life assurance company will also update its Lifetime Annuity Plan to allow existing customers to take advantage of April’s pension reforms, which remove the need for an annuity and permit 100% lump sum withdrawals from pension pots.
The new products, the Pension Investment Plan, Flexible Drawdown Plan, and Fixed Term Income Plan, will provide a range of ways to access defined contribution pension savings, including an option to continue accumulating savings by making lump sum contributions.
The Pension Investment Plan is aimed at individuals who have more than one pension plan and want to consolidate all their plans into one arrangement.
The Flexible Drawdown Plan allows individuals flexible access and can accept transfers in from any UK registered pension arrangement or another provider’s drawdown plan.
The Fixed Term Income Plan is designed to pay a guaranteed income for a selected term between one and 40 years, with a pre-arranged lump sum paid out at the end of a term. Additionally, customers do not have to take an income, they can request to have all their investment returned as a guaranteed maturity value.
Canada Life said it is finalising the charging structure for the new products ready for their release in April.
Additionally, the company has updated its Lifetime Annuity to mean that the second annuitant in a joint life application no longer has to be a spouse, civil partner, or financial dependant, annuity protection will remain available up to death before age 75 for one or both applicants, and applicants can still obtain an enhanced rate if they qualify either due to a range of medical conditions or their lifestyle.
