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New pension products have become available over recent months. These are known as "Third Way" or "Variable Annuities" and they provide guarantees such as:

• Income guarantee
• Fund value guarantee

These new type of products aim to provide an element of secured income, combined with some of the flexibility on an Income Drawdown plan. However, there are a number of different plans all offering different guarantees and different risks.

This type of plan is most appropriate for people who want the flexibility of an Income Drawdown but do not want their income to be directly affected by changes in the stockmarket.

Generally these products will guarantee to provide a set level of income based on a percentage of the fund value at outset for a guaranteed period of time. At the end of this period if the fund value has increased your income will be increased. If, however, your fund value has fallen your income will still remain at the existing guaranteed income level.

Some products will also "lock-in" the growth that has been achieved either on an annual basis or at an agreed date. Once the agreed growth is "locked in" this will be part of the guaranteed fund value at maturity or on death within the term.

To discuss your options call one of our pensions specialists on our FREE helpline or complete the quick enquiry form so we can contact you.