Alico Wealth Management has launched Lifetime Annuity and a range of tranche-based defined return options within its Select Portfolio retirement series. The guaranteed and structured investments in the Select Portfolio have a guarantee from Alico on top of the capital protection provided by the banking counterparty, which is inherent to the payoff of the investment option. The defined returns options include, among others, Controlled Opportunity Growth Structure, which incorporates 'net' and 'growth' options and will be available from 26 April to 21 May.
The annuity guarantees regular income for life in exchange for retirement savings from a pension plan. Alico is currently marketing the Retirement Plan as a viable option for clients to transfer savings from and to the Lifetime Annuity.
Income paid can either remain at the same rate throughout the plan's lifetime or increased at a fixed percentage (between 1% and 8% pa) throughout, linked to inflation via the Retail Price index.
"The Select Portfolio has been designed to help financial advisers to build sustainable relationships with their clients by adapting to investors' changing needs. We believe that clients shouldn't have to change products just because their circumstances have changed - their investments should be flexible enough to adapt with them," said product director Mark Hawthorne.
The underlying Select Investment range comprises around 100 third-party Alico Choice funds selected by Alico Wealth Management.
Hawthorne said the Select Portfolio range should encourage advisers to adapt their approach to the new RDR legislation ahead of the 2012 deadline.
This product is exclusively available to existing clients of an Alico Wealth Management pension plan between the ages of 55 and 75.
These products are available now in Recent Additions (UK).