Aegon confirms plans to launch corporate wrap
Pensions and insurance giant Aegon is set to launch a corporate wrap offering in the latter portion of the first half of this year, FTAdviser can reveal.
Speaking exclusively to FTAdviser, Paul McMahon, group marketing director at Aegon UK, confirmed that the wrap will be launched at some point in the second quarter of 2012 and that it will contain a pension and an Isa, amongst other components.
Mr McMahon said that it is a “big challenge” to get people to save but there are a “range of vehicles to accumulate wealth”, adding that the challenge was to help people think about how they can use them.
He said that the corporate market was “underserved”, saying that while lots of employers have savings schemes a large population of the UK aren’t saving.
Mr McMahon said: “The biggest challenge is engaging individuals in the importance of different forms of long-term savings and this will make it easier. That is why we are working towards a workplace wrap.
“Corporate wraps have tax benefits that come with a pension and employer contributions amongst others. I think some people talk about corporate wrap offerings a lot but I don’t think many genuinely are in this market.
“It’s an immature market at the moment and actually one we can take a big step in.”
Mr McMahon claimed that the most successful providers in this field will have “technology that works” and tax wrappers and applications that are “well-designed”.
He said: “I think the battle ground will be around the quality of the service proposition and support on the ground for employers and employees.
“Those organisations that make that simple and offer risk rating investment structures that people understand and are proactive will be successful.
“The competitive advantage will kick in and they will have to engage with employers and HR to become a provision of information. Doing this will distinguish us from the rest.”