Furthermore, despite only launching in February 2010 MGM Advantage's investment backed annuity already accounts for around a quarter of all asset-backed/ With-Profits annuity sales.
MGM Advantage, with its strong focus on product innovation, recognised a need for a retirement income product that could hedge against the negative effects of inflation.
With a minimum investment of £10,000, the Flexible Income Annuity has proved popular with consumers who are willing to accept an element of investment risk on some of their pension savings, providing they have a minimum income guarantee to rely on.
It has low annual management charges and a simple range of investment funds to choose from which have made the Flexible Income Annuity attractive to a previously poorly-served group of retirees.
Aston Goodey, Sales and Marketing Director, MGM Advantage, said:
"There is considerable interest in alternative retirement income solutions that can provide some protection against inflation along with the prospect of income growth. Indeed, rising inflation could herald the end of conventional annuities, which are delivering poor returns and are being surpassed by more innovative investment backed products.
"What's more, 90% of IFAs believe that the downward trend in annuity rates will result in an increased demand for alternatives to conventional annuities.
"Our Flexible Income Annuity has gone from strength to strength and we anticipate this will continue as more people realise the need to seek alternative annuity solutions which ensure they receive the best possible income when they retire."
