VitalityInvest is the Vitality brand’s new investment proposition.
The provider has long been unique in the protection sphere for its discounts and incentives as rewards for healthy living, and VitalityInvest combines these with a financial adviser-led investment proposition.
The firm has launched a stocks and shares Isa, a junior Isa and a retirement plan. All have a choice of active funds and a range of multi-asset passive risk-targeted funds, allowing clients to prioritise income or growth at different levels of risk.
Last year’s Drewberry Wealth & Protection Survey revealed more than one in five people had a pension worth less than £10,000, which won’t get you very far at all in retirement.”
Vitality is hoping to help bridge that gap with three unique elements: the Investment Booster, the Healthy Living Discount and the Retirement Booster.
The Investment Booster offers clients a boost to their savings the longer they stay invested in Vitality funds. Every five years, they receive a boost up to a maximum cumulative increase of 15 per cent over 25 years.
The healthy living discount offers reduced investment management fees for those who stay active.
Linked with VitalityHealth / VitalityLife’s insurance products – where you can obtain bronze, silver, gold or platinum status depending on how active you are – this rewards savers with lower investment management fees in exchange for the savers’ healthy living.
Platinum status means investment fees fall to zero – but again only on Vitality funds.
The final element is the retirement booster, which could boost a pension pot depending on how much is withdrawn annually and on the client’s Vitality Status.
Each year, Vitality examines income withdrawn, how much is invested in Vitality funds and a client’s Vitality status to work out how much they get back with the retirement booster.
Clients could receive up to 50 per cent of what they draw down each year.
Overall, VitalityInvest is an intriguing proposition with a range of unique elements and if it does encourage more saving and saving for longer, then it is a welcome addition to the marketplace.
Tom Conner is a director at Drewberry
