Advisers give too much weight to charges when assessing unit-linked guarantees and often fail to understand their value as a hedge against outliving retirement savings, a study suggests.
A report for Metlife Europe concludes advisers need to be aware no single product can be suitable for all in the retirement market, adding guarantees can add value “as well as peace of mind”. According to the study, entitled Unit-Linked Guarantees - Managing Risk in Retirement, the key factor in the success of the products in the UK remains investor attitude to risk. Metlife says the transparency of charges on unit-linked guarantees - which range between 0.5% and 1.75% - can leave the products open to criticism on costs. But the report finds the UK market is not used to transparent charg...
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