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What is a retirement annuity plan/contract (RAP/RAC)?

April 26, 2017Annuity contract Plan RAC rap retirement

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What is a retirement annuity plan/contract (RAP/RAC)?

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RAPs were the predecessors of personal pensions. They were offered at the time to the self-employed and the employed who didn’t have a company pension scheme. Their main purpose was to create a fund that could be used on retirement to purchase an annuity. No new RAPs have been issued since 30 June 1988, but people continue to pay contributions to existing contracts. When using the Retirement Planner please put all the information you have on retirement annuity plans/contracts under the personal pension category.