Aegon has won an innovation award for its 5 for life retirement product.
Scottish Financial Enterprise (SFE), a financial services support organisation, gave the overall award at The Innovators ceremony in Edinburgh earlier this week.
The product, a hybrid of an investment bond and an annuity product, also won the innovation in life and pensions category.
5 for life guarantees customers an income of at least 5% of the amount invested for life, while allowing the investor to retain ownership control of the investment funds.
The judges say 5 for Life manages to couple an annuity’s security an annuity with the advantages of an investment plan as it enables the investor to benefit from improvements in stock market performance.
Aegon launched its version of the concept, which originates in the US, in September last year. From the launch to September this year Aegon has reached £47m in the product’s sales, which the provider says received a boost when it partnered with Openwork in June.
Gregor Stewart, head of advisory services at the award's associates, Ernst & Young, says: “The success of the industry in an increasingly mobile market place is dependent on an ongoing drive for innovation and creativity, from all parts of the business, and The Innovators shows that companies in Scotland are striving to grow and develop.”
Earlier this month research by Aegon showed most advisers now ‘understand and accept’ the additional costs of providing a guarantee for life and believe their clients will, too.
Also at the awards Nucleus Financial won the innovation in business approach prize.
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