"Variable Annuities Germany is of huge strategic importance to Aegon Ireland," explains Simon Skinner, Aegon Ireland's CEO. "With the opening of our first branch in Frankfurt, we have an opportunity to take innovative retirement solutions to a market that will see over 11 million people enter the 55+ age bracket in the next seven years. Flexible pensions also offer an interesting opportunity to convert capital from maturing life insurance products into a lifetime guaranteed income."
Flexible Pensions
Aegon will market variable annuities as flexible pensions in Germany. They have significant market potential, with surveys showing that Germans aged between 55 and 80 currently hold assets of over 900 billion euro. Experts believe that a significant proportion of these assets could be converted into Variable Annuities every year.
"With the introduction of Aegon Secure DepotRente we address specific customer needs", explains Torsten Haupt, General Manager Aegon Germany. "Single-premium business in Germany remains underdeveloped due to the fact that traditional private annuities are somewhat inflexible and do not provide the feeling that a client can still 'touch the money'. Flexible pensions, like Aegon Secure DepotRente, overcome this barrier and therefore offer a great market opportunity in Germany."
Lifetime Guaranteed Income
Aegon's customers in Germany will now be able to benefit from the security of a lifetime guaranteed income that can also increase in line with positive trends in capital markets. In a declining market, income is guaranteed and will never decrease.
Aegon Secure DepotRente also offers a high degree of flexibility, providing access to capital at any time. Furthermore, the start of income payments can be changed with no loss of guarantees, even after the contract has commenced. In addition, withdrawals are free of charge and possible at any time. The product also delivers the tax advantages of private pension insurance.
Proven Variable Annuity Experience
The introduction of variable annuities in Germany, builds on Aegon's experience and best practices of its Transamerica brand in the Americas, where variable annuities are already a sizeable business.
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About Variable Annuities
Variable Annuities are an interesting product solution in the context of financial retirement planning. This applies particularly to customers looking for coverage of an additional guaranteed lifetime income against the background of demographic change and increasing life expectancy.
Policy holders benefit from being able to access their capital at any time, even after the start of income payments. The existing fund value will be paid to their heirs or nominated beneficiaries in the event of death.
Barriers to the purchase of private pension insurances, such as unsatisfactory access to capital, are removed. Compared to low-interest investments like overnight deposits, flexible pensions that combine guarantees and attractive chances of return, are an interesting alternative for a secure financial retirement.
