Savers choosing the Secure Income Option can start, stop and restart their income to suit their personal needs and if income is stopped, the income deferral increases restart. Savers can also access their investment or transfer out to other pension plans or retirement income solutions without incurring charges. Global powerhouses BlackRock and Fidelity Worldwide Investment are providing the investment expertise for the funds available within MetLife’s Retirement Portfolio which also offers a capital guarantee option.
Customers can choose from a range of investments to build a personalised retirement plan suited to the levels of risk they are willing to take while having the choice of a valuable guaranteed level of income for life or guaranteed capital sum.
Dominic Grinstead, Managing Director, MetLife UK, said:
“We believe this is the first income retirement solution specifically designed for the new pension freedoms and presents a genuine solution for customers in today’s retirement landscape.
“As market leaders in guaranteed drawdown we recognise that savers want to use every £1 they have invested to maximise their income but also to have access to every £1 throughout their retirement.
“The new Retirement Portfolio offers advisers and their clients a combination of certainty, flexibility and value and enables savers to take all the benefits of retirement freedoms. Our research with advisers and clients shows strong support for guarantees – around 72% of advisers believe clients should guarantee at least part of their income and 82% of retirement savers want to have most of their retirement income guaranteed.”
Tony Springer, Financial Adviser at Totus Capital, added:
“I believe the MetLife solution provides the flexibility, security and potential for long-term growth that the vast majority of our clients are looking for. It fits very nicely between the old school of annuity and capped income drawdown. For us it seems the best of both worlds.”
Ben Waterhouse, Head of Retail Sales, Fidelity Worldwide Investments, commented:
“At Fidelity we recognise the important role financial advisers play in retirement income planning for their clients. MetLife’s new Retirement Portfolio is a compelling solution and we are pleased to be the chosen provider of fixed income fund management.”
The Secure Income Option offers the choice of guaranteed income now or an enhanced income deferral for those seeking the certainty of a higher future income. MetLife calculates guaranteed income for life based on the value of a customer’s initial investment and their age when selecting the option. Its guarantees also include valuable guaranteed death benefits.
MetLife has also developed its innovative Active Asset Allocation which invests in a combination of the MetLife BlackRock Global Growth Fund and a range of MetLife Fidelity Corporate Bond Funds.
Guarantee charges start from 0.6% on the Secure Income Option and 0.3% on the Secure Capital Option. MetLife’s Active Asset Allocation has a total expense ratio of 0.55%. Minimum investments in Retirement Portfolio are £30,000.
