View more on these topics

Investec launches pension freedoms structured product

Pensions-savings-retirement-piggy bank

Investec has launched a structured product specifically aimed at the pension freedoms market as an alternative to an annuity.

The FTSE100 Retirement Deposit Plan 1 offers guaranteed income payments, with capital repayment at the end of the term depending on FTSE growth.

The six-year term has two income options of 5.25 per cent or 4 per cent income annually. The first option aims to return the full deposit if the FTSE 100 is higher than 90 per cent of the start level, while option 2 needs the FTSE 100 to be above 75 per cent at maturity.

The new product is intended to act like a fixed-term annuity, offering a regular income and some return of capital over a short time period. The product can only be bought in a Sipp.

Investec Structured Products head of intermediary sales Gary Dale says: “They are an alternative to a fixed-term annuity.

“In today’s financial environment of low interest rates and low gilt yields, it is more and more important to be able to ensure that capital lasts longer and retains its power to provide long-term income throughout the period of retirement.”

Recommended

British Friendly hires LV= protection boss

British Friendly Society has hired LV= managing director for protection Iain Clark as marketing and distribution director. Clark will join the company in the new role in September. Prior to LV=, where he has worked for the past four years, Clark has also held sales director roles at Legal & General and PruProtect. British Friendly […]

FCA interior 620x430

FCA drops Quindell probe as SFO investigates

The FCA has dropped its probe into Quindell after the Serious Fraud Office launched a criminal investigation into the business and accounting practices at the insurance technology firm. It is understood the decision was taken to avoid duplication between the two bodies. The FCA launched its investigation into Quindell in June this year, while the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Leave a comment