Important information about the guarantees we offer
- AEGON Secure Lifetime Income offers a choice of guarantees. These guarantees are promises that we're making to say that this product will deliver you certain benefits.
- Any guarantees are based on the ability of the issuing insurance company - in this case AEGON Ireland plc - to pay them. If, for example, that company no longer existed, then the guarantees it provides may be affected.
- It does cost a bit extra for guarantees. It's much like paying for the things you insure on a day-to-day basis just now. The cost of the guarantees will depend on where you choose to invest. Your financial adviser will be able to tell you how much this will be before you set up your plan.
- If you take out an AEGON Secure Lifetime Income plan and decide to cash-in your plan, then the guarantees will no longer apply. We don't offer a guaranteed cash-in value so you could get back less than the amount you originally invested.
AEGON Ireland plc is part of the AEGON group - one of the world's largest providers of pensions, investment and protection. We run a sophisticated, prudent programme that aims to allow us to honour the guarantees we make you. Your financial adviser will be able to give you information on how we do this.
Investment returns aren't guaranteed and, although the income is guaranteed with AEGON Secure Lifetime Income, the fund value isn't - so it could fall as well as rise, and you may get back less than the amount you originally invested.
If you're looking for information about your guaranteed investment or need a reminder of the benefits, read the questions and answers section below.
If there's anything else you need to know, speak to your financial adviser or contact our Client Relations team on lo-call 08456 000 173 (from the UK) or +353 1 673 8840 (if calling from outside the UK). You can also email us at client.relations@aegon.ie
An overview of AEGON Secure Lifetime Income (ASLI)
AEGON Secure Lifetime Income gives you a guaranteed minimum income for the rest of your life - no matter how long that is. How much you get will depend on how much you've invested and when you start taking income payments.
AEGON Secure Lifetime Income aims:
- To pay a set level of income, based on your original investment and the age you start taking an income, for the rest of your life - no matter what happens to the value of your original investment.
- To give you the opportunity to increase your guaranteed minimum income level through our Monthiversary® feature.
- To increase your income base by at least 3.25% of your original investment each year you're invested but not yet taking an income.
- To pay your estate the higher of your original investment less any guaranteed income payments received, or 100.1% of your plan's cash-in value if you die.
Investment choice
With AEGON Secure Lifetime Income, you control where to invest your money, so you'll always be comfortable with the level of risk you're taking.
You can choose from three different fund ranges. These are our Core portfolios, Multi-manager portfolios and our Create range. Our Investment choice leaflet gives you full details of these options. You can also get a copy of this from your financial adviser.
You can change where your money is invested at any time. To do this you should speak to your financial adviser, who'll be able to give you a 'Switch instruction' form.
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AEGON Secure Lifetime Income - common questions
What are the guaranteed minimum income amounts?
The amount we pay is based on how much you've invested and what age you are when you start to take your income payments. The table below shows this.
The figures in the table show how much we pay on plans taken out from 23 March 2012 to date. The figures in brackets show the amounts we pay to plans taken out from 15 November 2010 to 22 March 2012.
| Age | % | Age | % | Age | % | Age | % |
| 60 | 3.35 (3.60) | 65 | 3.80 (4.05) | 70 | 4.05 (4.30) | 75 | 4.30 (4.55) |
| 61 | 3.45 (3.70) | 66 | 3.85 (4.10) | 71 | 4.10 (4.35) | 76 | 4.35 (4.60) |
| 62 | 3.55 (3.80) | 67 | 3.90 (4.15) | 72 | 4.15 (4.40) | 77 | 4.40 (4.65) |
| 63 | 3.65 (3.90) | 68 | 3.95 (4.20) | 73 | 4.20 (4.45) | 78 | 4.45 (4.70) |
| 64 | 3.75 (4.00) | 69 | 4.00 (4.25) | 74 | 4.25 (4.50) | 79+ | 4.50 (4.75) |
When can I start taking my guaranteed minimum income payments?
Any time from age 60.
How often can I take my guaranteed minimum income payments?
Monthly, quarterly, twice a year or once a year.
Will there be any tax to pay on my income payments?
The income you receive from your original investment, before any increases, will be tax free for life. If your income payments grow in the future there may be tax to pay if the new payments exceed your capital content allowance. Your financial adviser will be able to give you more information.
What are the death benefits?
When you die, we guarantee to pay your estate the higher amount of either:
- your original contribution less any income you've already received, or
- 100.1% of the cash-in value of your plan
Please remember, if you've had more in income payments than your original investment, and there isn't a cash-in value, there won't be any benefit to be paid.
When will you check my plan to see if its value has increased?
We review your plan every year on the anniversary of the date you originally took it out.
How much could my guaranteed minimum income increase by?
There's no limit to how much your income can increase, as it depends on how well the funds you invest in perform. Remember the funds could fall as well as rise.
When can I take an additional withdrawal and what happens if I do?
You can take as much or as little as you like, at any time. However, taking additional withdrawals will reduce the future guarantees and there might be tax to pay on the amount you withdraw. Your financial adviser will be able to tell you how this works.
What are my investment choices?
There are three different ranges to choose from:
- Core portfolios - three ready-made portfolios made up of a mix of the UK Fixed Interest fund and the UK Index Tracker fund.
- Multi-manager portfolios - three ready-made portfolios made up of a mix of the UK Fixed Interest fund and a range of funds from our Create range.
- Create range - allows you to build your own portfolio from over 90 funds from some leading fund managers.
Your financial adviser will give you full details of all the funds available. There may be additional charges for investing in these funds.
Can I change the funds I've invested in?
Yes. You may change the funds you're invested in at anytime. Each year you can make 12 free deals. We reserve the right to charge for deals that are more frequent.
How can I find out how my plan is doing?
On request, we'll send you up to four valuations each year, free of charge.
Can I make additional payments to my plan?
No. If you want to make an additional payment, you'll have to set up a new plan.
What charges are there for my investment?
Your personal illustration will show you all the charges that apply to your investment. You can find out more information in the charges leaflet.
Reminding yourself of the risks
- Your original investment amount isn't guaranteed. Its value depends on how the funds you've invested in perform, the income payments you've had and any additional withdrawals you've made.
- Investment performance may go down as well as up and isn't guaranteed. You may get back less than the amount you originally invested.
- We don't assess the suitability for you, or the reliability of the underlying investments as this is the responsibility of your adviser.
- If you decide this plan isn't for you and cancel it during the cancellation period, then you may not get back the full amount you paid in if the investment has fallen in value during the time you were invested. Outwith the cancellation period, charges may apply and are dependant on how your plan's been set up. You can get more information on this from your financial adviser.
- Current legislation may change and this may affect the tax status of the plan.
- It's possible that an underlying asset linked to a fund you've chosen could reduce significantly in value or, in some circumstances, have no value (for example, due to insolvency of a bank or other organisation). If this happens, the value of your plan will reduce.
- All funds involve some degree of risk, for example, those investing in overseas equities may be exposed to currency exchange rate risk. For details of the risks specific to your fund(s), please see the relevant fund factsheet, which you can find on our website at www.aegon.ie/funds.
- If you invest in a fund that invests directly in property, then your plan could be affected by the following. When there are more people leaving the property fund than investing in it, the fund manager may have to sell properties to pay claims. If this is the case, we may take one or other, or both, of the following steps to protect the remaining investors in any fund investing either directly in property or in other funds that are themselves mainly invested in property:
- When more people are selling units in our funds than buying units, we will change our valuation basis to reflect this. This may result in a drop in our fund price. This will be bigger than for other types of funds because of the extra costs involved in buying and selling property when compared with, say, shares.
- We may also, but not necessarily, delay acting on instructions to switch/cash in a client's investment by anything up to 12 months if market conditions make it difficult for the manager to sell properties at a fair price.
The value of properties is determined by independent valuers appointed by a fund manager and is generally a matter of their opinion rather than fact.
Who should I talk to for more information?
Speak to your financial adviser to find out more. If you don't have one find an adviser in your area.