With conventional annuity rates at a record low, interest in Fixed-Term annuities has risen sharply over the last year and this has led to more innovation in this sector which is good news for retirees.

Pioneers of Fixed Term annuity plans, Living Time has re-branded as Primetime Retirement and joined forces with Investec and will launch a new SIPP-based Fixed Term Annuity plan in March. This new product is backed by deposit-based investments to deliver flexibility and a potential return for retirees.

Kim Lerche-Thomsen, CEO, explains: “The conventional FTA model that we pioneered has a great number of advantages –fixed income, a guaranteed return and better death benefits than a traditional annuity. The Primetime Retirement Plan we are now launching takes these features and wraps them within a SIPP to provide even greater flexibility.