Aegon has launched seven lifestyle investment funds designed to provide savers with more certainty about the size of annuity they can buy when they reach retirement.
The funds, which have been designed in conjunction with Morningstar OBSR, adopt a two-stage investment approach. In the initial phase, each fund attempts to provide investment growth which is aligned to the individual’s risk appetite.
In the second stage, which starts six years before a target retirement date, the funds progressively switch into long gilts and cash to preserve the size of pension an investor will be able to buy.
The annual management charge on the funds is 1 per cent.
Aegon head of investment services Mark Pearson says: “These launches demonstrate that we don’t only work with strategic partners on bespoke products, but also have the capacity to develop our own solutions to cater for investors changing needs as they approach retirement.
“We understand that retiring is a major event in life and believe in offering customers a simple, low cost solution that matches their attitude to risk. The availability of the lifestyle versions of these funds means we can now cater for those customers’ needs right up to retirement.”