Standard Life has furthered its strategic partnership with Fidelity International by launching the guaranteed lifetime income plan.

Held on the Fidelity adviser solutions platform within a flexi-access drawdown account, it addresses retiree concerns about running out of money in retirement.

Standard Life is responsible for the creation, administration and performance of the plan, while Fidelity provides the solution through its adviser solutions pension account.

The plan pays an individually underwritten guaranteed income for life, with the added benefit of being held within an individual’s drawdown account alongside other drawdown investment solutions.

This means that advisers can offer a guaranteed income for their clients on platform, in a way that aligns with their existing processes as part of their wider withdrawal strategy.

The income from the plan paid into an individual’s drawdown cash account, meaning that clients can decide the income they receive and when, while allowing advisers to maintain control and manage guaranteed income for their clients alongside drawdown investment solutions.

Furthermore, the plan is designed to help support a tax efficient withdrawal strategy and any income from the plan that isn’t required for withdrawal can be held within the drawdown cash account or can be re-invested into the investment options available on the platform.

The guaranteed income plan has been launched following the introduction of the Standard Life smoothed return pension fund in 2024, which is a smoothed managed pension fund designed to help grow pension investments while providing some protection from the daily uncertainty of investing by smoothing out the investment journey.

Managing director of individual retirement at Standard Life, Claire Altman, said: “The nature of retirement is evolving. People have more nuanced retirement journeys, with different needs at different life stages, which necessitates a range of different income solutions. Having certainty of income can be a valuable part of this mix, providing a guaranteed income for life, however people also want to maintain a degree of flexibility.

"The launch of the Standard Life guaranteed lifetime income plan addresses this need. Clients are able to decide the amount of income they want to receive and when so they don’t have to sacrifice flexibility, while giving advisers the ability to simply and efficiently manage a guaranteed income for their clients on platform with drawdown funds."

Head of distribution of global platform solutions at Fidelity International, added: "The strategic partnership between Fidelity and Standard Life has allowed us to combine our collective experience to enable the development of innovative solutions which cater to the needs of those approaching and in retirement. The launch of the Standard Life guaranteed lifetime income plan marks the latest proposition to be launched under the partnership, broadening the range of decumulation strategies offered through Fidelity adviser solutions.

"With people living longer - and spending longer in retirement - than ever before, the need for flexible solutions which allow advisers to help clients live, save, and spend is fundamental. Our continued partnership with Standard Life presents further opportunities to bring together our respective expertise as we respond to this challenge."

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