16th March 2013

AXA Life Europe: Helping clients protect their future retirement income

Helping clients protect their future retirement income, while giving them the opportunity to grow their pension fund.

How can you help your PPP and GPP clients avoid the pitfalls of Lifestyle Funds?

In a lot of meetings we are having with advisers post-RDR, the risks associated with the timing issues of lifestyling seem to be creating a lot of debate. The impact of the UK government's QE programme is potentially storing up a real issue for those clients adopting a lifestyle strategy, who are shifting their assets to gilts as they get closer to retirement.

We can help such clients avoid the pitfalls of lifestyling and protect their future annuity purchasing power, while allowing them to stay invested in equities for growth.

So why not take the guesswork out of retirement planning for your clients and offer them a future guaranteed income rate today?

According to SharingPensions.co.uk the current annuity rate for a 65 year old couple is:*

4.76% - 100% spouse

3.60% - 50% spouse & 3% escalation

What does Secure Advantage™ offer a 60 year old couple retiring at age 65?

Guaranteed Income rate of 4.89%**

What does Secure Advantage™ offer a 58 year old couple retiring at age 65?

Guaranteed Income rate of 5.14%**

So we can help you to protect the next generation of retirees to insure their future income.

If you would like to discuss this option in more detail, please get in touch.

For more information call us on 0800 368 0220 

*Source: http://www.sharingpensions.co.uk/annuity_rates.htm#text5 – figures for February 2013 (based on central London postcode). Annuity rates can vary from region to region.

**The Guaranteed Income Rates shown here include the effect of a deferral bonus which is added every year the client delays taking an income from their Plan, for 5 years in the first example and for 7 years in the second example.

For a complete description of the risks associated with this Plan your client should refer to the Plan Key Features Document. Some of the main risks associated with this Plan are set out below.

The guarantees provided by this Plan are provided only by AXA Life Europe. If AXA Life Europe were to become insolvent, the benefits from the Plan could be affected. While a lifetime income is guaranteed from the Secure Advantage™ Lifetime Income Plan, the value of the Plan is not.

The value of the Plan can fall as well as rise and is not guaranteed. If your client transfers/surrenders all or part of the Plan they may get back less than was invested as the Plan Value can go down as well as up in line with the performance of the underlying investments and Charges may be deducted on surrender/transfer. Transfers/surrenders will also reduce the Guaranteed Income Amount and Death Benefit payable under the Plan.

Tax legislation is subject to change and deductions will depend on your client’s personal circumstances. Death Benefits payable under the Plan may also be subject to tax. Clients must be aged between 45 and 75, and must have a minimum of £25,000 to invest in the Plan.

Nothing in this document is intended to be, or should be construed as, tax, financial or investment advice on the part of AXA Global Distributors or AXA Life Europe. We will accept no liability for any loss or damages incurred as a result of relying on any of the information provided herein.

AXA Life Europe is authorised and regulated by the Central Bank of Ireland. Registered office: Wolfe Tone House, Wolfe Tone Street, Dublin 1, Ireland. No. 410727. AXA Global Distributors is a trading name of AXA Life Invest Services Limited. AXA Life Invest Services Limited is authorised and regulated by the Central Bank of Ireland. Registered office: 3rd Floor, Guild House, Guild Street, IFSC, Dublin 1, Ireland. No. 466376.

Pensions, Retirement