Aegon has from today (15 October) introduced an online tool that explains guaranteed lifetime income and how the firm’s ‘secure lifetime income’ product works.
Using the simulator, advisers can customise a report specific to their client’s situation, helping illustrate ways in which the product can provide a guaranteed income and explaining how a guaranteed death benefit works.
Aegon stated that the tool will also give full transparency around charges, so customers can easily see what they are agreeing to with the adviser.
Duncan Robertson, director of marketing at Aegon Ireland, said that there is no ‘one-size-fits-all’ approach to guaranteed lifetime income.
“Our goal here is to help advisers to explain to their clients how our solution can work in a clear and tangible way.
“We’ve seen a marked rise in the number of advisers using technology on a day-to-day basis,” he added.
Alan Loomes, director of Bristol-based Fraser Heath Financial, told FTAdviser that the simulator forms part of the “proper” due diligence done when a client is nearing retirement.
“Explaining guaranteed income products properly can take two or three meetings to get things really sinking in, and literature from providers is often convoluted and difficult to understand.
“This tool will be good for advisers who are new to this space and is certainly helpful for running clients through their options.”
Mr Loomes added that while demand for annuities and guaranteed income products will inevitably decline after the Budget at-retirement reforms, there will still be a place for these types of product.
“These things won’t appeal to those set on withdrawing smaller pension posts, maybe those up to about £100,000. But some people with larger pots will still want more security, plus there will be those seeking a minimum guaranteed income, with some other form of drawdown for extras.”
peter.walker@ft.com
