Aegon is launching a new retirement solution, a secure lifetime income plan.
The new product will replace the company’s ‘5 for Life’ plan on June 29th, with no changes to the terms and conditions for current 5 for Life customers.
It will offer a guaranteed minimum lifetime income which has the potential to grow over time, with investment flexibility.
David Healy, managing director of Aegon Scottish Equitable International, said: “Aegon pioneered the variable annuity concept in the UK and we have seen it grow in popularity since we launched 5 for Life in 2006.
“There is a substantial market in the UK of customers who require the security of a guaranteed minimum income for life, but also want the opportunity for that income to increase over time by participating in potential equity growth. Many of these people are also looking for a flexible product that allows them access to their capital. Variable annuities are the only product type in the market to offer all of this.
“While other providers have come and gone, Aegon remains fully committed to this market. The new Aegon Secure Lifetime Income plan aims to meet customer needs in the current market climate and will provide valuable guarantees at an appropriate and affordable cost.”
Aegon secure lifetime income will provide “appropriate age related guaranteed income levels” as well as a income escalator feature.
The company says customers will benefit from market growth in increases to the income levels, simultaneously protecting the income from the effects of market falls.
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