Insurance giant AXA has confirmed it is testing a new variable annuity product, as reported by annuity-rates.org earlier this year. Under the banner of the ‘Secure Advantage brand’, these new products come with the safety of a minimum income guarantee. This flexible form of an annuity allows the annuitant to choose how their pension fund is invested. The products also come with protection in case the funds perform positively or negatively including the return of invested capital as well as ‘lock-ins’ in which growth is secured for calculating benefits. The annuitant will also be able to pick from a wide range of investment portfolio’s and investment managers.
The company said it will be trialing the product with a small number of advisers in order to gauge an…”…understanding of the market requirements and help identify any adjustments ahead of a full market launch.” David Thompson who heads up the wealth investments and distribution said this represented a great opportunity for IFA’s to work with their clients to find the best mix of …”downside market protection and upside market opportunity to fit their needs.”
