Aegon plan to enable customers and their advisers to combine income drawdown and unit linked guarantees from April in a move that they say will be "attractive for customers looking for a better blend of security and flexibility".
This new option will be called Secure Retirement Income and will be available on Aegon’s Retirement Choices platform and One Retirement products. Access will be online and will offer the ability for customers to move savings between drawdown and the guarantee as required.
Aegon are also launching a retirement income planning tool allowing the customer and adviser to create and model income plans including taking account of the pensions flexibilities, tax implications and most importantly how long their money might last.
In September, Aegon launched the High Income Fund, aimed at people looking to take an income but with potential for capital growth and additional funds with more active income strategies will be launched shortly. Aegon is designing a range of investment funds specifically tailored to investors at or close to retirement which can sit within drawdown.
David Macmillan, Managing Director, Aegon said:
“As a business Aegon is focused on helping people accumulate savings up to retirement and then manage their income effectively in retirement. In the past the insurance industry typically only focused on the accumulation phase but the Budget has changed everything and now a differentiated income proposition is vital. Aegon was an early mover in the market for drawdown solutions and variable annuities, and our platform was designed from the beginning to meet the decumulation requirements of advisers and clients alike. While the detail of the Budget came as a surprise, we were delighted by the opportunity to come to market with a fresh and innovative approach to secure income generation.
“The ability to combine true lifetime income guarantees with drawdown on platform will provide customers and their advisers with the certainty of income they tell us they want but also with a huge amount of flexibility both in terms of income and in terms of their ability to switch between products.”
