Following an IFA pilot at the end of July, Axa Wealth has launched a new set of variable annuity products manufactured by Axa Life Europe in response to the increasing demand for 'third way' retirement solutions in the UK.
Tom Wilkinson, Axa Wealth's director of strategy and business development, said feedback from the pilot demonstrated that certainty of income or capital from a well-known brand is welcomed in the UK, particularly in an uncertain investment environment. He said the firm was keen to provide advisers with an alternative solution for investors faced with the challenges of ongoing volatility, increasing longevity and limited support from the state.
Axa Life Europe Secure Advantage comprises two guaranteed products, which guarantee either initial capital at the end of ten years or a lifetime income on an immediate or deferred basis. Both choices have an annual lock-in option. The products are provided within three tax wrappers - retirement solution (personal pension), trustee investment plan and offshore investment plan to address different investment and tax profiles.
The Protected Capital product guarantees 100% of the initial investment with the option to lock in any growth from the underlying managed funds. The Lifetime Income products provide a guaranteed minimum income for life based on the customer's age when income begins.