3rd April 2014

Aegon leads the way on Budget reforms

The 2014 Budget has broken down barriers to saving and has created new retirement flexibility. Aegon wants to amplify this and help get the UK ready for retirement.

In response to these changes Aegon is helping advisers and customers navigate the widening range of retirement options. Aegon is driving significant changes to its straightforward pensions offering, One Retirement¹, and its holistic financial planning proposition Aegon Retirement Choices (ARC) ².

Aegon leading the market with simple charging

Simplified charges for One Retirement:

• ·     A single annual One Retirement product charge of 0.30% for all assets under £250k.
• ·    No product charge on assets of £250k and above, meaning the total annual product charge is capped at £750.
• ·    Low minimum investment amounts of £200 for regular monthly premiums and £2,000 for single and transfer premiums.

One Retirement lets investors build their savings and take an income in the same place, and now has one of the simplest and best value charging structures in the market.

Platform charge cap for ARC investors:

Investors in Aegon’s investment platform, ARC, will also enjoy no platform fee on assets of £250k and above, capping the total annual platform charge at £1,215 ².

Aegon’s innovative platform charge cap means it’s rewarding investors for saving more and consolidating their pension assets.

These changes – to One Retirement and ARC – will be available to all new individual customers from 3 May and shortly thereafter for existing customers. Aegon also expects to introduce a fixed charge for new ARC and One Retirement customers in 2015.

Improving choice and access for investors

Aegon is also reducing the minimum investment for drawdown for ARC and One Retirement from £50,000 to £20,000, in response to the Budget announcement last month. This will improve access for investors, especially to drawdown as an alternative to annuities.

Clear and simple One Retirement fund range

Aegon is also focusing its investment range in One Retirement to around 100 pension funds.

The range will include single-fund solutions like the Core Risk Profile Portfolios, and options for investors who need to draw an income from their savings. It will cover all asset classes and include active funds managed by a select group of leading fund managers, and low-cost passive options.

The full range and fund managers will be confirmed later this month.

Nick Dixon, Aegon Investment Director said: “The changes revitalise our One Retirement proposition, improving drawdown access and investment simplicity. It is especially rewarding for customers who want to consolidate their pension assets. It’s great that we are able to bring these benefits to customers so soon after the budget and it reinforces Aegon’s commitment to help the UK get ready for retirement.”

All of the above changes take effect from 3 May 2014.

Budget, Pensions, Retirement