Flexible retirement savings plans coming to the UK
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".
