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Lock-in deal on Aegon offshore products

Aegon has launched three new unit-linked guaranteed products which allow investors to lock in growth on an annual basis.

The plans are offshore bonds guaranteed by Aegon Ireland. The secure capital bond offers future capital and death benefit guarantees. The secure income product offers an income guarantee, a death benefit guarantee and a guaranteed benefit.

The trustee investment plan is targeted at Sipp and SSAS customers and offers trustees a combination of income and capital guarantees. The income guarantee is equal to 5 per cent of the original investment for 20 years. The capital guarantee protects investors against loss for eight to 20 years, depending on the terms agreed. Guarantee charges vary between 0.4 per cent and 2.05 per cent, depending on the term and asset split.

Investors can choose between coreand multi-manager portfolios, with annual management charges of 0.5 per cent and 0.9 per cent respectively.

Head of at-retirement sales development Gavin Casey says: “Advisers will inevitably focus on the charges of these kinds of products but our research shows that people tend to be loss-averse.”

Wingate Financial Planning director Alistair Cunningham says: “Given the costs of the guarantees and the circumstances in which they apply, I struggle to see a market for these products.”


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