Your guide to One Retirement

Transcription

1 For adviser use only not approved for use with clients Your guide to One Retirement

2 Contents Introducing One Retirement 2 Growth, income or both? 3 One Retirement fund range 3 Fund governance keeping our Funds Promise 4 Investing for growth 5 Taking an income in retirement 7 Investing in retirement 8 Tools to help you and your clients 9 A straightforward charging structure 10 Why Aegon? 11 Introducing One Retirement We re committed to helping create better financial futures. So, we ve developed this simple pension solution in response to changes in the market and consumers retirement needs. One Retirement is a pension that lets your clients consolidate, build up retirement savings and take income from a single account providing a seamless transition into retirement. And with straight-through online processing for all transactional servicing, you stay in control. It offers: one account for life, evolving as your client s needs change; simple charges, with no product charge for savings over 250,000; a focused fund range, helping you and your clients find the right funds faster; online tools and services, and the flexibility for your clients to choose how and when to take a retirement income. The value of an investment can fall as well as rise and investors may get back less than originally invested. Page 2 of 12

3 Growth, income, or both? Depending on what stage of life your clients are at, they ll have different requirements. One Retirement offers a straightforward personal pension that facilitates the growth and consolidation of pension savings, and lets your clients take an income in retirement all in one low-cost, online account. One Retirement fund range One Retirement makes fund selection straightforward narrowing the thousands of options on the market to around 100 that we think are the very best. Concise range helps you find the right funds faster. Options in each major asset class. Adopt strategies to suit accumulation, drawdown, or a mix. Automatic rebalancing to maintain the preferred blend. Online model portfolios for use with multiple clients. This leaves more time for you to spend advising your clients. What s in our fund range? Our One Retirement range includes the funds most pension clients need, whether they want to grow savings or take an income. It includes fund solutions built by us for those who want to keep things simple and singleasset funds for use when building portfolios. You can browse the range of funds on offer at aegon.co.uk/advisers/ one-retirement/fund-range.html Growing savings Approaching retirement Building portfolios Page 3 of 12

4 Fund governance keeping our Funds Promise We re dedicated to making sure these funds are able to meet their commitments. Rigorous governance is our highest priority, and is underpinned by our Funds Promise. Our Fund Governance Group reviews the One Retirement fund range, and our partner fund managers, annually and makes changes as required to make sure it continues to meet your expectations. Aegon specialists Independent specialists Fund Governance Group Fund monitoring Portfolio changes Fund range changes Our Funds Promise We aim to offer high quality funds which meet their objectives. We monitor funds to check if they perform as expected. We take action if funds don t meet expectations. We give you the facts you need to make decisions. There's no guarantee that fund objectives will be met. The value of an investment can fall as well as rise and investors may get back less than originally invested. You can browse the fund range on our website at aegon.co.uk/advisers/one-retirement/fund-range.html Page 4 of 12

5 Investing for growth Clients who are some way off from retirement will want investments that help them grow pension savings over time while taking only as much risk as they re comfortable with. Our pre-built pension solutions are designed to do just that. Growth solutions Balance risk and long-term growth potentia. Options across the risk spectrum Independent risk management from industry experts Monitored regularly to check they re meeting our Funds Promise Developed with expert managers, our Risk-Target portfolios offer pension clients the reassurance and simplicity that comes from holding sophisticated risk-managed solutions, conveniently packaged within single funds. Choosing and governing investments is costly and difficult to get right and you ll need to justify your recommendations over the lifetime of that investment. Aegon s growth solutions take care of asset allocation, fund selection, risk management and ongoing governance in conjunction with independent and respected experts. This brings both efficiency savings and a reduction in business risk leaving you more time to spend with your clients. We offer three types of growth solutions: Core MI Select Aim Keep costs low Reduce impact of extreme falls Outperformance Long-term risk management Short-term downside management Mainly actively managed You can find out more about these funds at aegon.co.uk/about-aegon/investments/growth-solutions Page 5 of 12

6 Single asset funds We also offer a concise selection of actively and passively managed funds covering all major asset classes, so you can build model or bespoke portfolios for clients. You can choose funds from Aegon, or from quality partner fund management houses. Each partner was chosen with Morningstar for its breadth across asset classes, brand strength and for selected areas of excellence. Aegon then selected the funds from each manager to include in the One Retirement range. Our partner fund managers: Portfolio building support To help you make the most of our extensive investment range, One Retirement also offers support in building investment portfolios. This helps you create and monitor strategies that meet client needs while making sure your business processes remain efficient. This includes: Online model portfolio building so you can build efficient, scalable investment propositions that only your clients can access. Automated rebalancing reducing the need for manual intervention. Portfolio management and monitoring tools so you can keep track of your portfolios easily. Page 6 of 12

7 Taking an income in retirement Our research tells us that 90% 1 of our customers want to know how much income they ll have in retirement. Most also want the flexibility to access that money if they need to, or should their circumstances change. We ve designed One Retirement to meet these needs. We've designed One Retirement to make the most of the retirement options available. There are broadly three ways for your clients to take an income in retirement, listed in the table below. Cash lump sum Annuity Flexi-access drawdown Client cashes in retirement savings 25% tax-free lump sum, pay tax on 75% 2 Guarantees an income for life but with limited flexibility Provides an income whilst the client remains invested but their income isn t guaranteed Guaranteed income for life Pass savings to loved ones Extra cost Make changes if needed Growth potential Extra cost 1 Source: Aegon Customer Panel, Pension Freedoms survey, May The amount of tax-free cash available may vary depending on circumstances and any guarantees previously secured. This is based on our understanding of the current legislation, taxation law and practice in the UK which may change. Page 7 of 12

8 Investing in retirement People are living longer and many now retire gradually. Coupled with low annuity rates and legislative flexibility, this means drawdown is becoming increasingly attractive. To meet these in-retirement investment needs, we ve included funds designed specifically to provide a retirement income. Drawdown income Drawdown lets retiring investors retain control over their investments. It also offers greater flexibility over how and when they take income than an annuity does. Those who need the security of a guaranteed income can combine retirement strategies, buying an annuity to cover essential expenses while retaining the flexibility of drawdown for the remainder. One Retirement offers a number of high-quality funds for drawdown income investors, but includes two pre-built portfolios specifically designed for those taking an income: Aegon High Income fund Aegon Stability fund 5% plus Aims to provide attractive income, plus some capital growth Flexible strategy using a mix of investment types Learn more about Aegon High income Aims to preserve existing savings, deliver positive returns Targets steady growth with limited volatility. Designed for cautious investors Learn more about Aegon Stability To see the full range of growth and income funds available through One Retirement see our One Retirement fund list Page 8 of 12

9 Tools to help you and your clients We provide a range of tools to help you with research and asset selection, to complement and enhance your service proposition. One Retirement also has a range of planning tools which you can use with your clients to help them plan for all stages of their lives. Asset selection and research tools Asset selector search for all funds, based on manager and sector. You ll see all the assets matching your search criteria plus links to fund factsheets and charting tools for each asset. Fund charting the same fund charting capability as above, but you can see multiple funds at the same time. Portfolio scanner create a virtual portfolio. Then choose a sector (for example ABI Smaller Companies) or index (for example FTSE 100) to benchmark it against. Client planning tools Clients also have access to a range of online planning tools to help them plan, save and budget for their future. Your Retirement Planner is our dedicated site that allows your clients to review the different options available to them at retirement. Included within this site are two tools: Retirement needs calculator enter details of essentials, desirables and luxuries to see the level of income they ll need in retirement to cover these expenses, and Retirement income planner clients can compare what they ve saved with what they ll need, and review the different options available to them in retirement. Our portfolio performance review tool looks at the performance of a client's portfolio taking into account actual cash flow and works out the rate of return earned. It s designed to answer the question How has my money done? and can measure the success of switching strategies. Simplified administration One Retirement can help simplify your administration, as you manage your clients accounts online. With its straight-through online processing capabilities, you stay in control and save time, as you can: quote and apply; transact business; create and service drawdown requests, and trade online select and change funds. You can also access management information like client-focused documents and reports online. Online access for your clients To help protect your clients, you have control over the online access that they have. There are three levels of access that you can give: no online access this satisfies the client who wants you to take complete control of all their investment decisions; view access your clients can see information such as valuations and statements but can t transact; and self-serve access your clients will be able to carry out their own transactions online, such as making contributions and switching investments. Your clients will automatically be given access, but if you d prefer to restrict their access, you can switch this off when setting up their plans. Page 9 of 12

10 A straightforward charging structure One Retirement has a simple, transparent charging structure so your clients can see exactly what they re paying for. One Retirement's three core charges One Retirement charges Investment charges Adviser charges These are to cover the cost of administering your client s One Retirement account. A flat annual charge of 0.3% each year, with no annual charge payable on the value of any assets above 250,000. These cover the cost of managing investments and checking if they re performing as expected. They ll vary depending on the assets your clients choose to invest in. These charges will apply if we ve been asked to facilitate them. They re to pay for the advice you give, and are agreed between you and your clients. The One Retirement Charges Guide gives more detailed information on all these, and other charges, which may apply depending on your client's personal options. We might vary the charges at our discretion. Page 10 of 12

11 Why Aegon? Established in the UK since 1831, Aegon is an international provider of life insurance, pensions and asset management. Today, our focus is on supporting savings, protection and investments. By taking strategic steps to create the UK s largest online investment platform, we re hoping to make it easier and simpler for anyone in the UK to achieve a lifetime of financial security. We ve grown and evolved over the years, but we ve stayed committed to our core aim of helping customers take control of their finances, so they can create the future they want. Our steadfast mission is to get the UK ready for retirement. We ve combined our deep understanding of the pensions and investments markets with award-winning technology to bring you One Retirement giving you an overarching view of your clients portfolios. We use the Aegon platform for pension business, as not only is it all online and easy to use, therefore driving efficiencies into our business, it has an excellent investment proposition Aegon s platform offers everything we need and is difficult to find a more compelling solution in the market place. Mike Rutter Dip PFS, Cert CII (MP & ER), Director, Best 4 Advice Ltd An award-winning platform One Retirement has been recognised at both the Platforum and the Aberdeen UK Platform Awards. These awards recognise the superior technology and innovation that we ve brought to the platform market. We re committed to continually developing One Retirement to make sure it meets and goes beyond your expectations. Our platform also offers an excellent level of service, as reflected by the Defaqto Gold Service Rating Page 11 of 12

12 Contact us For more information about One Retirement, please get in touch with your usual Aegon contact. You can also visit Aegon UK Aegon UK Aegon is a brand name of Scottish Equitable plc (No. SC144517) and Aegon Investment Solutions Ltd (No. SC394519) registered in Scotland, registered office: Edinburgh Park, Edinburgh, EH12 9SE. Both are Aegon companies. Scottish Equitable plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Aegon Investment Solutions Ltd is authorised and regulated by the Financial Conduct Authority. Their Financial Services Register numbers are and respectively Aegon UK plc RET /18