Savers can invest in the Secure Income Option from age 50 and take a guaranteed income for life from age 55. They will be able to start, stop and restart their income to suit their personal needs and if income is stopped, the income deferral increases restart.
Customers using the capital guarantees are protected against market falls and have the certainty of a guaranteed amount at the end of their chosen term. The ISA provides the potential for growth and locks in any investment growth above the guarantee base daily.
MetLife research among retirement savers aged 45-plus shows strong interest in ISAs with two out of five (40%) planning to use some of their tax-free savings for retirement planning. But they are concerned about the existing options on offer with more than two-thirds (68%) saying cash ISA rates are too low and 49% worried about stock market volatility.
Research with advisers found that 54% have changed their recommendations on the use of ISAs for retirement planning since April and 72% want to see more ISA innovation.
Dominic Grinstead, Managing Director, MetLife UK, said:
“ISAs will play an increasingly important role in retirement planning and Guaranteed ISAs will be a major growth area.
“There is a clear need for innovation which is why we have developed our ground-breaking Guaranteed ISA as a tax-efficient savings solution suited to the 21st century. Customers can benefit from increased certainty over income and capital, as well as full flexibility in retirement.
“People are already looking for ways to make ISAs work better for them and as the market leader in Guaranteed Drawdown, we believe there is a huge opportunity to increase competition in the ISA market to the benefit of customers and their advisers.”
