Investors and trustees can choose income and capital guarantees for Sipp and Ssas products through the trustee investment plan with the option to lock-in up to 10 per cent growth annually or unlimited growth every two and a half years.
The Secure Income Option guarantees an income for the life of the scheme member. It can be selected from age 45 with income starting at any time from 55 up to 74 years.
According to Metlife, for each year income is deferred, the guaranteed minimum income increases by at least 3 per cent.
Each year, for a single life policy, guaranteed income can vary from 3.75 per cent to over 9 per cent of the initial investment depending on the age and deferral period, the firm says.
Customers opting for the Secure Capital Option can choose term-related guarantees ranging from eight years to a maximum 20 years depending on the index portfolio they select.
Investment growth can again be locked-in either annually up to 10 per cent or every two and a half years with unlimited potential.
The minimum charge for the product is 50 basis points with a fund management charge of 20bp. The maximum charge for the product is 155bp.
UK managing director Dominic Grinstead says: “The Sipp and Ssas market is an important growth area and guarantees have a major role to play as the market continues to develop. Providing income for life or an alternative to cash investments are key targets for this product.
“Trustee Retirement Portfolio further enhances our product range and we will continue to adapt and innovate as we respond to client and adviser demand for increased choice and flexibility in retirement saving solutions.
“Annual step-ups and improved income at key ages plus term-related guarantees are a proven template in bonds and retirement savings and we are confident they will be successful in the Sipp and Ssas market.”
Metlife currently offers unit-linked guarantees through its Retirement Portfolio and Income for Life bond.
The minimum investment is £50,000 and additional single premiums of £5,000 can be made by customers.
They can also pay regular premiums of at least £3,600 a year after meeting the £50,000 initial minimum investment requirement. But regular premiums can not be paid into the Secure Capital Option. The maximum investment into Metlife guarantees is £1.5m across all products.
There is a guaranteed minimum death benefit on both the Secure Capital and Secure Income Option.