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Your clients could get a boost of up to 50% of the income they draw down each year
We all want to live longer, healthier lives, with enough money to make the most of it. But the longer we live, the harder our savings need to work. Our Retirement Booster is designed to help your clients achieve both better health and a bigger pension pot.
How it works
The Retirement Booster could boost your client’s Retirement Plan every year, on top of their returns, aiming to help their savings last longer. Once a year, we’ll look at how much income they’ve taken from their plan, how much they’ve invested in eligible Vitality funds, and their Vitality status. We’ll use this to work out how much of their drawdown income they get back as a Boost. The Retirement Booster only applies to the part of your client’s Retirement Plan that is designated to flexi-access drawdown.
Qualifying criteria apply – please refer to our terms and conditions for more details.
When your client starts a Retirement Plan with us, they get automatic access to the Vitality Programme at no extra cost. It’s designed to help your clients take steps towards a healthier future and rewards them with real financial benefits. By holding one of our VitalityInvest plans, they’ll qualify for the Vitality Select version of the Vitality Programme.
By taking part in the Vitality Programme, your clients can earn Vitality points and improve their Vitality status to get a bigger boost to their Retirement Plan. By doing things like staying active and tracking what they do they earn Vitality points. The healthier their efforts, the more points they can earn towards improving their Vitality status - Bronze, Silver, Gold and ultimately Platinum.
To qualify, your client will need to:
- Invest in a VitalityInvest Retirement Plan with Healthy Fee Saver and Boosters
- Be in flexi-access drawdown
- Keep their pension pot invested in eligible Vitality funds.
What your client could get back
The amount your client gets back each year is a percentage of the income they draw down over the year. It also depends on how much they have invested in Vitality funds. The more they invest in them, the more they could get back.
|Income your client draws within the year
||Retirement Booster percentage|
|Bronze status||Silver status||Gold status||Platinum status|
- At the start of the year, your client has £100,000 in their retirement pot, from which to draw down an income.
- By the end of the year, they’ve withdrawn £2,500 (2.5%) and achieved Gold Vitality status, giving them a maximum potential Retirement Booster of 15% (as shown in the table).
- They have 80% of their retirement income pot invested in Vitality funds.
Their Retirement Booster for the following year is £2,500 x 15% x 80% = £300.
The value of investments – and the income from them – can go down as well as up, meaning your client may get back less than they invest.
This isn’t intended as a personal recommendation to invest in a particular product. Your clients’ investments should be based upon their unique circumstances, attitude to risk and investment goals, and should be regularly assessed.
Log in to Adviser Hub to access our great tools and show your clients how they can live a longer, healthier, more financially secure life.
Retirement Booster Tool
Show your clients how the Retirement Booster can enhance their retirement drawdown pot.
Show clients how much longer their savings could last in retirement with our unique Boosters and Discounts, and how much longer they could live if they take steps to be healthier.
Where to next?
Healthy Fee Saver with Boosters
Find out how your clients can give their investments a boost over the longer term when they invest in Vitality funds.
Healthy Living Discount
By making healthy lifestyle choices, your clients can save more on product charges through our Healthy Living Discount.
The investment choice that rewards your clients when they make positive lifestyle choices.
Discover our personal pension plans that allow your clients to save towards their retirement and access their savings flexibly when they retire.