14 May 2008
The first pension product based on a US-style variable pension
is due to be launched in the UK next week by Aegon. Other companies
are expected to cash in on the new market in the next 12
months.
Variable pensions will expose savers to riskier assets with
higher returns such as equities, but will have explicitly priced
guarantees to protect the capital or provide a minimum level of
income.
The first variable pension on the market will offer a guaranteed
income for life irrespective of longevity or investment performance
which it is hoped will be highly attractive to millions of "baby
boomers".
