Aegon has announced 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.
From November 15, 2010, new ASLI customers who are not yet taking income will receive the annual boost to their income base 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. Previously, the original investment was reviewed on the policy anniversary date. If the investment had grown on that date, the growth was locked-in to increase the income base figure. 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 to the investment growth that can be locked in.
There will now also be specific income levels for all ages, starting at 3.60 per cent at age 60 and rising to 4.75 per cent from age 79+. Previously, the income levels were grouped in brackets of five years.
Aegon 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 stock market volatility.
“As we refocus our strategy on the at-retirement market, unit-linked guarantees will continue to be a key part of our proposition.”