• Higher guaranteed income at all ages increases competition with annuities

• Market-leading deferred income and shorter capital guarantee terms highlights flexibility

• Focused fund range provides volatility protection and a solution for low market growth

MetLife is raising income rates whilst still delivering a market-leading income deferral rate as it launches a new generation of guaranteed products designed to provide enhanced certainty and flexibility for advisers and clients.

Income rates are being increased by up to 0.6% on the enhanced guarantees range, which is available for new business from July 29th, and capital guarantee terms are being reduced to provide increased flexibility.

MetLife’s new generation of guarantees provides a market-leading deferred income rate of 3.50% enabling clients to plan ahead for retirement income with certainty while the focused fund range, run by world-leading asset manager BlackRock, delivers volatility protection and a solution for low stock market growth.

The enhanced range, designed in response to feedback from advisers and clients, moves unit-linked guarantee rates closer to annuity rates ensuring MetLife’s unique guaranteed solution delivers flexibility and certainty.

Dominic Grinstead, Managing Director, MetLife UK, said: “The combination of certainty and flexibility is the key to providing retirement income solutions which deliver for savers and advisers.

“As the market leader in unit-linked guarantees, our new generation of guarantees has been designed in response to feedback from advisers and clients identifying the need for increased income as well as shorter capital guarantees and the deferred income option.

“Ongoing uncertainty highlights the need for unit-linked guarantees which have taken a strong position in the UK retirement income solutions market. This new generation product will ensure the market continues to expand.”

Clients opting for the income guarantee can choose between MetLife’s Managed Wealth Portfolio Foundation and Min Funds while those choosing the capital guarantee can choose the Foundation, Min, Mid and Max funds.

Minimum terms on the capital guarantee start from 10 years now compared with 20 previously across the full MetLife range.

Guarantee charges on the new generation capital guarantee start from 0.35% compared with 0.6% previously while on the income guarantee product they range between 0.95% and 1.2%. Fund and AMCs are unchanged on both. The full range of adviser facilitation options is available.

MetLife has seen rapid growth underpinned by its Managed Wealth Portfolios which have grown to more than £1 billion under management in just 12 months after launching the new funds in partnership with world-leading asset manager BlackRock.

The successful launch has helped drive MetLife’s total funds under management in the UK to £3.9 billion since launch in January 2007.