Aegon is entering the bulk annuities market and will target closed defined-benefit pension schemes in smalland medium-sized companies by spreading the cost of buyout over a number of years.The life office says it is the first to offer a phased-fund approach for smaller schemes in the bulk annuities arena, enabling employers to gradually reduce the risk of scheme liabilities and company balance-sheet volatility. Aegon Trustee Solutions will let SME scheme trustees combine traditional pension scheme investments with deferred annuities in the scheme funding plan. Figures from the Association of Consulting Actuaries 2005 survey show that 74 per cent of defined-benefit pension schemes with less than 250 members are now closed to new entrants. Aegon says it will offer its standard deferred annuities through a controlled distribution strategy initially but plans to develop this wider at the end of the year. The market for bulk annuities and closed books of business is becoming one of the most competitive areas in the industry. Last week, Prudential UK chief executive Nick Prettejohn said the number of new entrants and increased competition are driving down insurers’ margins. Aegon UK chief financial officer Mark Laidlaw says: “We believe we are the first player in the bulk annuity market to offer a specialist solution for the SME market that has the potential to cost them less and allow a controlled wind down of the pension scheme.”
Microsoft Office has topped advisers’ lists of favourite technology suppliers in a poll by 1st. The survey of 150 intermediaries found that 57 per cent used back-office systems at least six times a day, with smaller firms of five or more IFAs using them most frequently. Reliability, ease of updating and ease of use were […]
First State is set to commence the offer period for the First State Indian subcontinent fund on November 1.The fund will be a sub fund of the First State ICVC (UK registered Oeic) and will be managed by First State senior portfolio manager, Asia Pacific ex-Japan equities, Vijay Tohani.The fund is an extension of the […]
Halifax is to offer customers access to everyday legal products such as wills and expert legal advice.The group believes it is the first major high street financial services provider to offer such a service which customers can access for an annual membership fee of £89.Members will have unlimited access to legal services either online, or […]
Barclays has brought out two structured products aimed at people with offshore life bonds.
Dr. Andrew Lo, Founder and Chief Investment Strategist at AlphaSimplex, discusses how the firm adapts to changing market conditions, focusing on their drawdown strategy.
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Michael Klimes examines if advisers can resolve all drawdown issues themselves or if a wider effort is needed
Intrinsic must compensate a client for the pension transfer advice it gave them. According to a Financial Ombudsman Service decision, in 2015 Mrs C was told to transfer her two existing personal pensions valued around £80,000 to a new Sipp provider. This money was placed in a scheme where Mrs C could adopt a dynamic […]
“There is nothing permanent except change”, so said the “weeping philosopher” Heraclitus circa 500 BC. Few would argue change was not needed in the retirement income market; it is just no one expected it to be so inorganic and non-negotiable. The impact of the pension freedoms Budget bombshell in 2014 was immediate and significant. Revisiting […]