Announcing the launch of AEGON secure lifetime income plan

AEGON has announced the forthcoming launch of a new retirement solution, which meets the flexible investment needs and desire for income security that a growing number of people in the UK are now demanding.

The AEGON Secure Lifetime Income plan builds on the success of 5 for Life, which was launched in September 2006. It will offer a guaranteed minimum lifetime income that has the potential to grow over time, and also provides customers with investment flexibility.

The new product will replace AEGON's 5 for Life plan on 29 June 2009.

There will be no change to the terms and conditions for those customers who have already purchased a 5 for Life plan.

AEGON continuously reviews its guaranteed product range and, when appropriate, will adapt the products to correspond with the prevailing market conditions whilst also meeting the income and investment needs of its customers.

Instead of offering a minimum 5% guaranteed income for life, from age 60, as is the case with 5 for Life; AEGON Secure Lifetime Income will provide appropriate age related guaranteed income levels and a valuable income escalator feature, which will enable customers to benefit from market growth by locking in increases to the income levels, whilst at the same time protecting that income from the effects of market falls.

David Healy, Managing Director of AEGON Scottish Equitable International, said: "AEGON pioneered the variable annuity concept in the UK and we have seen it grow in popularity since we launched 5 for Life in 2006.

"There is a substantial market in the UK of customers who require the security of a guaranteed minimum income for life, but also want the opportunity for that income to increase over time by participating in potential equity growth. Many of these people are also looking for a flexible product that allows them access to their capital. Variable annuities are the only product type in the market to offer all of this.

"While other providers have come and gone, AEGON remains fully committed to this market. The new AEGON Secure Lifetime Income plan aims to meet customer needs in the current market climate and will provide valuable guarantees at an appropriate and affordable cost."