LV= is piloting a flexible guaranteed bond which, if successful, will be extended to the firm’s Sipp.
The product is with-profits-based and offers capital guarantees. It is being tested with a small group of adviser firms.
Head of pensions Ray Chinn says: “We are piloting a new flexible guarantee bond with our key relationships. It is going well but we will need to look at the results to see if we will take it further. At the moment, it is just structured as a life bond but we are looking to put that in a Sipp wrapper if it proves successful.”
Metlife has just launched a new guaranteed bond which offers capped and uncapped step-ups on guarantees.
The offshore and onshore product, Income for Life, allows investors to lock in potential gains every year or two and a half years, with income and capital guarantees.
The annual step-up is capped at 10 per cent but the two-and-a-half-year step-up is uncapped.