Aegon has made enhancements to its unit-linked guarantee product, Aegon Secure Lifetime Income, including a guaranteed minimum annual increase of 3.25 per cent to the income base for new customers.
New ASLI customers who are not yet taking income will receive the annual boost regardless of the underlying investment performance.
Aegon says, in addition, the chances of a customer achieving an increase to their income base figure have been improved.
The original investment was previously reviewed on the policy anniversary date. The new enhancement, which takes the highest recorded investment value at the end of each of the previous 12 months, “significantly increases” the likelihood of an increase to the income base.
Aegon says there is no cap on the investment growth that can be locked in.
Head of individual marketing Gordon Greig says: “A guaranteed income is more important than ever for people as they approach retirement, given current low interest rates and stockmarket volatility.
“As we refocus our strategy on the at-retirement market, unit-linked guarantees will continue to be a key part of our proposition.”