Do you suffer from any medical conditions?

If you have a poor medical history or suffer from certain health conditions, you may be entitled to our enhanced rates. This could increase your yearly income typically by around 20%.

Are there any age restrictions?

You must be between 55 and 85 years old to buy a Flexible Income Annuity. If you want to include benefits for your husband, wife or civil partner, they must be aged between 35 and 100. We can also offer enhanced rates for partners but only people between the ages of 50 and 85 can qualify for enhanced spouse rates.

How much income can you take?

You can choose to take between 50% and 120% of the amount you’d receive with a standard annuity. So, if you plan to keep on working part-time or have another source of income, you could choose to take a lower income at the start and leave more of your funds invested with the potential to grow. You could then choose to take a higher income later on in your retirement.

Alternatively, you may choose to take the maximum income of 120% at the start and then reduce the amount you take in later years. Once you’ve chosen the income level you want, your annual income will stay the same until your next income review (every three years, unless you ask for one earlier).

Is there a minimum income guarantee?

From day one, we’ll set a minimum income guarantee (MIG) that will be in place for the rest of your life, even if the value of your fund ever drops below this amount. The MIG will be equal to 50% of the conventional annuity rate available at the start of your policy.

What level of investment growth will you need?

When you choose your starting income and investment funds, we’ll let you know the investment performance you need to achieve to maintain that income level.

How will you know if your funds are on track?

Every three years we’ll review your policy. We’ll send you a statement each year, letting you know if your funds are performing in line with your expectations and let you know the new income range you can choose from and you’ll receive your chosen amount until the next review.

What is the Lifetime Bonus?

One of the special features of the Flexible Income Annuity is that customers benefit from what’s known as mortality cross-subsidy. It means we pool the funds of policyholders who have died earlier than expected and share these among remaining customers by way of a monthly Lifetime Bonus in the form of additional units. You don’t get mortality cross-subsidy with income drawdown.

What are Member Bonuses?

MGM Advantage is a mutual Society and Flexible Income Annuity customers become members of the Society and can benefit from any annual member bonuses that are awarded. The member bonus comes from some of the profits we make as a business and classifies you as an MGM Advantage with profits policyholder. However, you won’t be invested in a with profits fund – only the investment funds you choose from the range available. Read more about membership here

Can I leave my fund to my loved ones?

You can choose to leave part or all of your remaining fund to a loved one in the event of your death and each option will have an affect on the amount of income you could receive.

Can I move to a fixed income or to another provider?

If at any time you decide that you no longer have an appetite for any kind of investment risk, you can change your policy to a fixed income basis. You can also transfer your annuity to another provider in line with HMRC rules. When you reach age 90, your annuity will be moved to a fixed income basis and will no longer be exposed to investment risk but you will still be entitled to member bonuses.

How will you keep me informed?

We’ll send you a statement each year, letting you know how your policy has performed and about any bonuses that have been added.

How do I buy one?

Our Flexible Income Annuity is only available through Financial Advisers.

Find an adviser near you: www.findanadviser.org.uk