14th July 2014

AXA life invest: Teaing up for retirement?

When Steve Webb uttered the headline grabbing “Pensioners free to buy Lamborghini” was he serious? Or was this a clever reference to “Let them eat cake” and Chancellor Osborne’s aristocratic up-bringing? For historians, “Let them eat cake” demonstrates the obliviousness and selfishness of the French upper-classes during the French Revolution. Is Mr Webb at odds with his coalition partner? Is he trying to demonstrate that George Osborne is out of touch with the man on the street regarding the pension reforms?

One thing is certain. Before and after the Budget announcement, the retirement needs of the everyday man did not change. Back in 2012, Ernst Young published their Consumer Insurance Survey. In it, they identified that for the over 55 age group, the most important thing financially was for people to be able to protect their retirement income. We carried out our own research following the Budget changes and this need remained consistent: security of a guaranteed income for life in retirement remains at the top of what people look for when deciding what they want from their pension.

This puts advisers in a difficult position. What do you do when your client wants a guaranteed income for life, lump sum death benefits, and the ability to change their mind in the future about what they’re purchasing today?

I would urge advisers at this point to consider a pension product that offers unit-linked guarantees. These types of products have been designed with the needs of people approaching their retirement in mind. These pensions offer a guaranteed income for life, lump sum death benefits and the ability to transfer to another pension product. If you don’t know about these types of products, it’s a good time to find out. Other advisers are already using them.

To find out more call AXA Life Invest on 0800 368 0220 (available Monday to Friday 8.30am-5.30pm) or email or visit their website

Email distributor.service@axa-lifeinvest.com

www.axa-lifeinvest.com

The Secure Advantage+ range of plans is underwritten by AXA Life Europe Limited. AXA Life Europe Limited, trading as AXA Life Invest, is authorised by the Central Bank of Ireland, and is subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request. Registered in Ireland under number 410727. Head office: 3^rd Floor, Guild House, Guild Street, IFSC, Dublin 1, Ireland. Member of the AXA Group.

Retirement, Pensions