The end of guarantees on drawdown?
Aegon, the only provider of guaranteed drawdown products in the U.K, is in discussions with IFA's to determine whether a market still exists for such products.
As the sole U.K. provider of guaranteed drawdown following the departure of AXA and Met Life from the guaranteed drawdown market, Aegon has confirmed that it will be carrying out it’s own market research over the next 6 months as well as speaking to IFA's to establish whether client demand for these arrangements still exists.
Aegons UK chief executive Adrian Grace recently stated that the market for these products stands at 2.5 billion pounds and demand is falling short of company expectations. He suggested that although some advisors were supportive, interest is generally less than anticipated. Grace took the view that deferring a decision on the withdrawal of their guaranteed product was sensible. He considers that the impact of pension freedoms has yet to be fully felt.