"When they look after their health, we’ll charge them less to invest; and when they manage their income in drawdown, we’ll add to their retirement savings."
VitalityInvest is launching three products: a stocks and shares ISA, a junior ISA and a retirement plan – all available exclusively through advisers.
The firm will also offer a Healthy Living Discount which can reduce the customer’s monthly product charge to as low as £0 for healthy living. Customers with a qualifying VitalityLife or VitalityHealth policy pay discounted charges if they engage in Vitality’s Healthy Living programme and invest in Vitality funds.
Additionally, VitalityInvest’s Investment Booster encourages customers to save sooner and for longer. A boost of up to 15% to savings over 25 years, including growth, is awarded at no additional cost. The boost will be applied every five years to a customer’s savings in Vitality funds, over and above any investment returns.
VitalityInvest’s Retirement Booster also awards annual boosts to customers' retirement drawdown pot of up to 50% of income drawn.
VitalityInvest will offer advisers tools to show their customers how their state of health and lifestyle influence their life expectancy and their financial plans, and how changes to lifestyle and the Vitality boosters and discounts can improve their outcomes.
Finally, in partnership with Investec Asset Management and Vanguard, VitalityInvest will offer two fund ranges: a range of active funds and a range of multi-asset risk-targeted funds using index-tracking components. The funds allow customers to prioritise income or growth at different levels of risk.
Herschel Mayers, CEO of VitalityInvest and VitalityLife, said: “Solutions currently available in the investment market are not fit to adequately prepare us for the retirement of tomorrow.
“People are living longer and want more from later life, yet many don’t start saving soon enough to fund those extra years or take steps to ensure they arrive there in good health. We believe VitalityInvest is the solution. It is a unique approach founded on positive behavioural change that brings together saving and wellness. By changing behaviour, we produce economic and health benefits that are good for our members, good for advisers, good for us and good for society. We call this shared value.
“So when people save for longer, we’ll boost their savings; when they look after their health, we’ll charge them less to invest; and when they manage their income in drawdown, we’ll add to their retirement savings.
“At Vitality, our approach is to only ever enter a market if we are confident that we can make a positive difference to our members’ lives. With this positively different range of savings products, I sincerely believe we can.”
