Unit-linked guarantees are set to expand rapidly in the pensions market, according to MetLife.
Ed Gardner, chief executive officer at MetLife – which is set to launch a personal pension that offers both capital and income guarantees – has spoken of the need for products to meet the uncertainty that clients and advisers face in the current market.
“The risks from rising inflation, stock market volatility and the need to plan for potentially up to 30 years of retirement demonstrate the need for new solutions.
"We believe the new retirement portfolio delivers on all fronts and makes unit-linked guarantees a major part of mainstream retirement planning,” he says.
MetLife’s new retirement portfolio provides unique guarantees which protect clients against markets falling, locks-in gains when markets rise and guarantees income for life.
The product is available from age 23 and offers guarantees at charges starting from 0.5%.
Richard Howells, managing director for strategy and development at Bankhall, adds: “We believe the unit-linked guarantee market is going to be an important growth area for advisers over the next few years and are very encouraged by the high level of product innovation we have seen.”
"The ability to opt for guarantees when required is an important feature as it increases flexibility for clients.”
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