Drawing on its successful experiences of variable annuities in the US, where it is a $130bn market, Aegon has just introduced its Five For Life plan, which I feel is an interesting product with some valuable guarantees attached.The plan is halfway between an insurance bond, offering 5 per cent annual withdrawals, and a purchased life annuity with a guaranteed income for life. The client has the flexibility to access their investment and there are potential death benefits, unlike a regular purchased life annuity. The premium is invested in a choice of three funds, which are varying mixtures of equities and bonds. There is the potential for any growth that outstrips the not inconsiderable charges and 5 per cent withdrawals to lead to higher income payments in the future. In reality, this product is not about capital growth, it is about securing a regular income for life and removing the client’s fear of outliving their assets while retaining access to their capital. As the fund is based offshore, it benefits from gross roll-up. There is no initial charge but it has various annual and establishment charges according to the fund and commission structure chosen. Five For Life is not a total answer to the problem of funding in retirement but it does offer something different and for that reason it is worth a closer look. Matthew Woodbridge is bond manager at Chelsea Financial Services
The FSA’s consultation period on the age 70 rule has now ended. Would you like to see the rule abolished or the age threshold raised to 80? Which option do you think the FSA is likely to take? Would you like the rule to be scrapped on all types of whole-of-life plans or only certain types?
The FSA is urging consumers that have bought motor insurance from Double Easy Brokers – trading as Eeasybrokers – to arrange new motor insurance immediately.Eeasybrokers is not authorised by the FSA and it was offering invalid motor insurance policies to the public. Consumers should contact the FSA’s helpline if they have queries as it is […]
Lifesearch claim that consumers who buy protection products without advice cannot seek redress form the Financial Ombudsman Service. This is not the case. The fundamental principle, which applies both to advised and non-advised sales, is that firms should treat their customers fairly and provide them with clear, fair and not misleading information. We require firms […]
The critical-illness insurance marketplace is forever being characterised by two unflattering traits – that it fosters an ongoing price war and that it is starved of product innovation.
Value stocks have significantly underperformed growth stocks in Europe in the past decade. However, Rob Burnett, manager of the Neptune European Opportunities Fund, believes we are now approaching an inflection point. Watch the video below to find out more. In the video, Rob discusses: How low inflation and loose monetary policy since the global financial […]
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