Super safe pensions for all at retirement


John Hiew
Chief Executive
Assured Retirement Ltd
T 0117 284 4013

Super Safe Pensions for all at retirement
Assured Retirement offer a solution for those who want flexible access to their pensions from age 55 but do not wish to have any investment risk. Investment risk can be a significant factor in the short term and when taking income from a pension. Cash would have outperformed the FTSE 100 on 34.91% of occasions over a five year period in the last 20 years*.

Assured Retirement’s Cash Retirement Account is a low cost pension with no investment risk designed for the average retiree who wishes to access their pension using the new post 6th April pensions flexibility, but do so without any investment risk. The Cash Retirement Account only invests in cash deposits and each account may be tailored according to individual needs. It offers access to a panel of banks and building societies that are all covered by the UK Financial Services Compensation Scheme.

John Hiew, Chief Executive of Assured Retirement says:

“An estimated 130,000 individuals are expected to access their pension funds in 2015/16 and for those who do not want the inflexibility of a lifetime annuity or the investment risk normally associated with drawdown, a cash based drawdown arrangement is a natural alternative. When drawing an income from their pension, many retirees cannot afford to take a medium to long term investment view and whilst the average annual return from the FTSE 100 over the last 20 years (including reinvested dividends) has been 7.37%, cash would have outperformed the FTSE 100 on 34.91% of occasions over a five year period*.  The Cash Retirement Account offers a solution for those who want flexibility but wish to avoid investment risk. It is a new product that uses modern technology to offer a low risk, low cost retirement income solution for customers.”

The Cash Retirement Account:

  • Can be set up for any investment term from 1 year to 5 years, in whole months
  • Has a minimum investment amount of £18,000, net of any tax free cash lump sum
  • Offers the ability to specify a taxable lump sum in addition to a tax free cash lump sum
  • Enables individuals to tailor their income, defer taking income, take a sustainable income or take no income at all
  • Offers the facility for an individual, or their employer, to make additional pension contributions
  • Has no investment risk because it only invests in cash deposits
  • Limits the exposure to any single bank or building society to a maximum of £85,000
  • Only uses bank/building societies that are covered by the UK Financial Services Compensation Scheme
  • Maximises the interest earned by using a panel of banks, building societies and National Savings and Investments
  • Offers both Flexi-Access Drawdown and Uncrystallised Funds Pension Lump Sum options
  • Has a low, all inclusive charge that is fully disclosed within every Personal Quotation

*Source – Assured Retirement calculations based on the following assumptions: a cash return of 2% per annum net of charges; a FTSE 100 net annual dividend of 3.10% after allowing for quarterly dividends and a typical ongoing charge of 0.07% per annum for a low cost index tracking fund; no allowance for stamp duty or dealing charges; zero index tracking error; zero initial charge; no allowance for adviser charges; calculations are based on every 5 year period from 2 January 1995 to 1 May 2015.

Tel: 0117 284 4013

Assured Retirement Limited is authorised and regulated by the Financial Conduct Authority, FRN 651421.
Registered and incorporated in England and Wales No. 09265346. Registered address is 23 Westfield Park, Redland, Bristol, BS6 6LT.

This document is intended to contrast the relative performance of cash versus stock market based investments. Share prices and income from those shares may go up or down at any time. Past performance is not necessarily a guide to future performance. You should not take, or refrain from taking, any action based on this information. This information is not advice and if you are unsure about the suitability of an investment, you should seek Independent Financial Advice.

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This entry was posted by John on Thursday, June 18th, 2015 at 8:42 pm and is filed under Assured Retirement news.