Friends Provident Launches New Fund Aimed At Retirees

Alisha Ramkaran

7 April 2014

has launched the Flexible Future Benefit Trust.

It is aimed at retirees and those who are saving for retirement; it is also impacted by the impending reductions in pension annual and lifetime allowance limits.

The Flexible Future Benefit Trust allows investors to make gifts to the trust while also keeping access to a series of future capital entitlements.

When used with an offshore bond, investors benefit from gross roll up on the underlying investments, the ability to shelter capital from inheritance tax in the event of their death and the flexibility to defer scheduled capital payments to a future date, without any inheritance tax consequences. Policies can also be assigned to lower tax paying beneficiaries.

The Flexible Future Benefit Trust allows investors to top up their investment, which is different from other products in the market that are used in combination with an offshore bond. For those who see the impact in next week’s reduction in the annual and lifetime allowance limits and are looking for an alternative tax efficient retirement option, the feature will prove useful.

“The Flexible Future Benefit Trust offers flexibility unrivalled by other trusts in the market place and meets the needs of the growing number of people affected by inheritance tax and the reduction in the pensions annual and lifetime allowances. It will appeal to those planning for retirement as well as those now enjoying it,” said Irvine Baxter, UK regional sales director.

The Flexible Future Benefit Trust follows the success of the Friends Provident International’s Future Benefit Trust that was launched in March 2013.