AEGON’s ‘5 for Life’ offers increased control and certainty

AEGON has announced a number of new enhancements to its ‘5 for Life’ retirement solution.

Launched in September 2006, ‘5 for Life’ is a completely new type of investment product in the UK aimed at customers who are nearing or at retirement. ‘5 for Life’ offers investors control of their fund and certainty of income, for the rest of their life.

Until September 2006, investors in the UK tended to look at two traditional choices when approaching retirement. Collective investments – which provide complete control of investments, but no certainty of income, or a purchased life annuity, which offer certainty of income, but no control of investments. AEGON successfully bridged this gap and brought the new variable annuity concept, a mainstay of the US at-retirement market, to the UK.

While other variable annuity style products, aimed at the "pension" market, have emerged. AEGON’s ‘5 for Life’ is still the only product of its kind in the UK that meets the needs of those approaching retirement that is not a pensionable product.

From 29 October 2007, investors in ‘5 for Life’ will have access to 50 new funds with three different investment approaches, to suit customer needs. These investment approaches are:

The core approach – using AEGON’s existing four tailored portfolios

The multi-manager approach – using AEGON’s four tailored multi-manager portfolios selected in conjunction with Morningstar

The portfolio construction approach – using a range of specialist sector funds from some leading fund managers

In addition to increased fund choice, customers in ‘5 for Life’ will also now benefit from a new money back guarantee. After the tenth anniversary, customers are guaranteed to get back at least the money they invested – less any income taken or the cash-in value if that is higher.

Commenting on the product enhancements, David Healy, Managing Director of AEGON Scottish Equitable International said: "These new enhancements add even more control and certainty to the range of benefits 5 for Life offers customers at or approaching retirement. The variable annuity concept is gaining momentum in the UK market and we intend to make sure AEGON stays at the forefront of developments.

"In making these changes we have increased control, certainty and flexibility for customers, but we are also aware that our adviser partners need greater control and flexibility around the advice and recommendation process too. We have built this portfolio planner to help advisers in this process. We believe it will save considerable time and money and will also give advisers the opportunity to revisit their client’s investment strategy over time and make further alterations to continually meet their changing investment needs."