Aegon has withdrawn its off-platform income guarantees range and closed four products to new business.
The products are Aegon’s secure lifetime income, secure income, secure capital, and secure trustee investment.
Aegon says it is committed to customers with existing guaranteed products.
In a statement, it says: “Applications submitted with a valid illustration produced prior to 17 November will continue to be processed during the pipeline period which will run to Friday 16 December.”
Aegon will focus on its on-platform drawdown with guarantees offering, Secure Retirement Income. Aegon says, so far this year, sales for SRI are up 139 per cent on the same period last year.
Aegon chief distribution and marketing officer Mark Till says: “The pension freedoms have transformed the market for guarantees and demand for guaranteed drawdown has taken off.
“This decision will allow us to fully focus our efforts behind SRI which is integrated with the Aegon Retirement Choices platform and is where we’re experiencing the majority of demand for our guaranteed products. There will be no change for existing customers.”
In Platforum’s latest adviser survey, several respondents mentioned the SRI product as a reason for using the platform.
Platforum research director Heather Hopkins says: “Aegon’s move seems to be simple product rationalisation. The products that are being closed are off-platform bond products that deliver an income. The secure retirement income product is an on-platform solution that fits Aegon’s focus as a business.”