Aegon claims readiness for at-retirement reforms

Aegon has proclaimed itself ready for the introduction of the new at-retirement flexibilities, citing its income drawdown and guaranteed products.

The provider’s third quarter results, published today (13 November) stated Aegon’s platform - launched two years ago - has reached £2.4bn assets under management and is likely to continue its rapid growth when the government’s Budget reforms hit next April.

Aegon’s earnings before tax were up 13 per cent compared with the third quarter last year, to £22m, with performance apparently “driven by better persistency”.

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The group’s protection business was also up 30 per cent on the last year’s year-to-date figure.

The business added 59,000 new customers in the third quarter, 10,000 more than in the second quarter, while 97 new auto-enrolment schemes were also added in the third quarter.

Adrian Grace, chief executive of Aegon UK, said that 2014 has seen a legislative revolution across the pensions industry, with the firm’s quick reactions to the changes setting long-term strategy on course.

“We now have the fastest growing platform in the UK, and we expect this growth to continue driven by both our improvement programme to help advisers manage their clients, our new developments in technology and enhanced product range, which continues to develop.

“We’re ready now to help all of our clients with the new pension flexibilities. We have market leading income drawdown and guaranteed products and have the only platform in the UK which provides solutions for advisers, workplace based employees and non-advised customers to and through retirement.”

Mr Grace expects demand for guaranteed products, income drawdown and the platform across its three core channels of workplace, advisers and non-advised, to continue increasing.