Over 45s have appetite for retirement guarantees

Category: Annuities
Date: 7/1/2009

The vast majority of people aged 45 years and over feel that guarantees on their retirement are important to them.

It is one of the findings of consumer research conducted by AEGON to determine the attitudes of people aged 45 and over towards guarantees and alternative retirement solutions.

One of the clear findings was that consumers have a clear desire for variable annuity products. The valuable guarantees they provide after retirement were cited as being a major factor.

Nine out of ten people questioned said guarantees were important to them.

In addition, just under of six out of ten said they'd probably opt for a product that offers a minimum guaranteed level of income for life with the potential for further gains, as opposed to traditional annuities, bonds and income drawdown.

Thirty five per cent of people said that in the context of the difficult economic climate, they would consider a variable annuity type product.

"Our research has revealed that larger numbers of people are drawn to products that will provide them with guarantees in the current financial climate," said head of individual marketing, Gordon Greig.

"It is encouraging to see people are recognising the importance of this market and the value for money variable annuity products provide."