The launch comes at a time when falling corporate bond rates are putting downward pressure on conventional annuity rates and people in retirement are increasingly looking beyond traditional choices when considering their retirement income options.
The new Flexible Lifetime Annuity launches with a £35,000 minimum purchase price (after tax-free cash) – down f r o m £75,000 – and no maximum limit, making it more accessible to more customers.
The fund range is also improved and now comes complete with a range of 50 funds, 32 of which are new.
The increased number of funds will mean a wider investment choice for people who select the Flexible Lifetime Annuity in their retirement. It will include funds f r o m the leading investment houses including Artemis, AXA, BlackRock, Gartmore, and JP Morgan among others, while retaining the current range which includes funds f r o m Invesco, M&G, Newton and Prudential.
The rationale behind increasing the number of funds is to provide greater variety and flexibility within the four investment strategies offered by the Flexible Lifetime Annuity product.
Flexible Lifetime Annuity customers can choose f r o m one of four investment strategies – cautious, standard, adventurous and the self-managed investment strategy – which reflect the level of risk for each strategy, rather than the funds within the portfolio.
By increasing number of funds within the Flexible Lifetime Annuity customers will have an opportunity for greater exposure to a complete range of risk graded funds, each designed to suit both current and future appetite to risk, and with the built-in option to switch funds throughout the lifetime of their Flexible Lifetime Annuity.
Vince Smith-Hughes, Prudential’s head of business development for retirement income, said: “We are seeing a shift in the options that people are prepared to consider when selecting an annuity. Greater choice, flexibility and investment diversity are becoming increasingly important to our customer base as it becomes more sophisticated.
“A new lower minimum investment amount and a revamped fund range has increased the choice available to customers and is part of our strategy to offer the widest range of annuities in the UK.”
Via EPR Network
More Financial press releases
