For scheme members | Aegon Secure Trustee Investment
A range of guarantee
options for pension money
Contents
Introducing Aegon Secure Trustee Investment
A quick overview of the product and what it can offer you
4
Four things that could affect your retirement plans
A look at the factors that could affect your money
6
Guaranteed lifetime income option
A look at the amount of guaranteed lifetime income you can receive
10
Monthiversary feature – potential for your income to increase
See how this unique feature could increase your guaranteed lifetime income
12
Guaranteed increases before taking income
A look at this feature and how it provides guaranteed growth to your income base
13
Guaranteed death bene t
Read about the guaranteed death beneit option available and how it works
15
Guaranteed capital option
A look at how the guaranteed capital option protects your original investment
18
Capital escalator feature – giving you the potential to lock in investment growth
See how the capital escalator can lock in investment growth
20
Guaranteed death bene t
Read about the guaranteed death beneit option available and how it works
21
Guaranteed income option
A look at the amount of income you can receive
24
Monthiversary feature – potential to lock in a guaranteed bene t
See how this unique feature could provide a guaranteed beneit in the future
26
Guaranteed death bene t
Read about the guaranteed death beneit option available and how it works
27
What else is important to you?
A quick look at where you can invest your money, and get access to it if you need to
28
About us and how we help to protect your investment
A snapshot of the processes and controls that help us protect your money
30
Aegon Secure Trustee Investment 3
Introducing
Aegon Secure Trustee Investment
Aegon Secure Trustee Investment is for members of a self-invested personal
pension (SIPP) or small self administered scheme (SSAS), who have between
£20,000 and £1 million to invest and where the scheme trustee(s) is taking the
plan out on your behalf.
It’s a single premium unit-linked investment plan that lets your trustee(s) (or administrators) choose
one of three different guarantee options at the start of the plan.
The options you can choose from are:
Guaranteed lifetime
income option
Page 10
OR
Guaranteed
capital option
OR
Guaranteed
income option
Page 18
Page 24
Each guarantee is available with or without our guaranteed death beneit option. You can’t select the
guaranteed death beneit option on its own.
We’ll talk about the different guarantee options and our guaranteed death beneit later in this guide.
Do you worry about money and whether you’ll have enough to live off in the future? Ask yourself
these key questions.
• Do you want a guaranteed income for life?
• Do you want a guaranteed income for a set period of time?
• Do you want to invest without the fear of losing your money?
• Do you want your investment to have the potential to increase?
• Do you want to invest your pension in an investment that could leave money
for your loved ones on your death?
• Do you want the lexibility of where to invest, but at the same time retain
access to your money in case your circumstances change?
4 Aegon Secure Trustee Investment
There are a few important things you need to have in mind when reading
this guide:
When we talk about a guarantee or guarantees, we mean the promise we make that the product or
feature will deliver you a certain beneit. It’s important to understand that any guarantee is based on the
ability of the issuing insurance company – in this case Aegon Ireland plc – to pay it. If we were unable
to meet our obligations, then the guarantee(s) would be affected.
We use examples throughout the guide to show you how the product features could work. These
examples aren’t predictions of what we think will happen in the future, they’re for illustrative purposes only.
For the purposes of the examples, tax hasn’t been deducted as we pay beneits to the trustees of your
pension scheme and they don’t pay any tax. You may be liable to pay tax on the amount the trustees
pay you.
Aegon Secure Trustee Investment 5
Four things that could affect your
retirement plans
1. How long will your money last?
We’re living longer than ever before. This means the money you save for
retirement will have to last longer than you might imagine. This is often referred
to as longevity risk.
The chances of a 60 year old living to age:
75
85
95
8 in 10
3 in 5
1 in 4
9 in 10
3 in 4
1 in 3
Source: egon CMI Experience
Would you like to reduce the chance of your retirement portfolio running out?
2. Market ups and downs
While markets can provide the potential growth for retirement portfolios,
unpredictable conditions can seriously affect plans and impact your income or
capital. This is called volatility risk.
Tim
e
Tim
e
When markets are going
up your money is working
harder for you and this
means your savings will
potentially last longer.
However, when markets
are going down the
concern is that your
savings may not last as
long as you’d wanted.
Would you like to protect your income or capital from market falls, but potentially
gain from market increases?
6 Aegon Secure Trustee Investment
3. Low interest rates
Interest rates normally vary over time and depending on their level and whether
they’re rising or falling, they may impact you in different ways. They can have an
impact on how your savings might grow. This is interest rate risk.
Interest rates have been low for some time.
£100k
£100k
0.8%
invested in a
standard SIPP
cash account
gross average
yearly interest
£100k
5%
Low returns achieved if
bank interest rates continue
to remain low
to invest
invested in Aegon
Secure Trustee
Investment*
yearly growth
rate**
Potential for higher growth
which could lead to higher plan
values which could last longer
* Assumes £100k invested 100% in Managed Risk Portfolio Cautious fund.
** Based on Financial Conduct uthority maximum mid growth rate.
This isn’t intended to be a like-for-like comparison of a standard SIPP cash account with Aegon Secure
Trustee Investment. When we compare investment products to bank or building societies, please
remember that these are different types of investments.
Would you like a retirement product with the potential for better investment growth?
4. Inflation and your buying power
It can be hard to appreciate the effect inflation can have on retirement plans,
as it happens gradually over a number of years. However, it can have a serious
impact on your buying power. This is inflation risk.
£100,000
to spend now
Would be worth in
30 years’ time?
£55,207
if the inlation rate was
an average of 2%
£30,832
if the inlation rate
was an average of 4%
Would you like a product that could provide investment growth to help offset
inflation?
Aegon Secure Trustee Investment gives you the choice of three guarantees. But that’s
not all, there are other features that may help towards alleviating the risks above.
Read on to nd out how it may be the solution you’re looking for.
Aegon Secure Trustee Investment 7
Would you like the money
you’ve saved to give you an
income that will last for the rest
of your life and won’t go down?
8 Aegon Secure Trustee Investment
Guaranteed lifetime income option
Guaranteed lifetime
income option
Guaranteed lifetime income option
A look at the amount of guaranteed lifetime income you can receive
10
Monthiversary feature – potential for your income to increase
See how this unique feature could increase your guaranteed lifetime income
12
Guaranteed increases before taking income
A look at this feature and how it provides guaranteed growth to your income base
13
Guaranteed death bene t
Read about the guaranteed death beneit option available and how it works
15
Guaranteed lifetime income option
With Aegon Secure Trustee Investment you can receive a minimum guaranteed
income for the rest of your life – no matter how long that is – even if your original
premium runs out.
Stop and think about that for a minute... you’ll never run out of income with this
guarantee option. It can last for 30, 40 or even 50 years – however long you live for.
Here’s how we work out the yearly guaranteed lifetime income amount
At the start of your plan, your original premium is
called your income base. To calculate the amount
of guaranteed lifetime income you get, we multiply
your income base with the relevant age-related
income percentage, corresponding to the age
when you start taking guaranteed lifetime income.
We calculate and set our age-related income
percentages to achieve the best balance for you
between guarantee beneits and costs.
The table below sets out the age-related income
percentages for single life:
55 – 3.15%
60 – 3.65%
65 – 4.00%
70 – 4.40%
75 – 4.45%
56 – 3.25%
61 – 3.75%
66 – 4.10%
71 – 4.40%
76 – 4.45%
57 – 3.35%
62 – 3.85%
67 – 4.20%
72 – 4.40%
77 – 4.50%
58 – 3.45%
63 – 3.90%
68 – 4.25%
73 – 4.45%
78 – 4.50%
59 – 3.55%
64 – 3.95%
69 – 4.30%
74 – 4.45%
79+ – 4.50%
Joint life is an option, however, please check with your SIPP or SSAS provider that they can
accommodate this option and we can provide you with details of the income rates applicable.
Guaranteed income can start
at any time from age 55
If you invest £100,000
at age 65
Take income immediately
Age 65
= 4.00% x £100,000
Yearly income for life
= £4,000
10 Aegon Secure Trustee Investment
The guaranteed lifetime income age-related
percentage doesn’t increase each year as you get
older. For example, if you start taking guaranteed
lifetime income at age 65 your income rate is set
at 4.00% of your original premium each year. It
doesn’t go up to 4.10% when you turn 66.
We’ll pay the guaranteed lifetime income to
the scheme you’re in and it’s your trustee or
administrator’s responsibility to make sure any
guaranteed lifetime income you receive is within any
applicable limits set by HM Revenue & Customs.
When you take guaranteed lifetime income from
your plan, it will reduce the fund value by the
amount of guaranteed lifetime income taken out.
If there’s no remaining fund value your guaranteed
lifetime income will still be paid. Your guaranteed
lifetime income won’t go down unless you take
additional withdrawals.
Aegon Secure Trustee Investment 11
Monthiversary feature – potential
for your income to increase
Would you like the opportunity for your guaranteed lifetime income to increase?
Well it can with our unique monthiversary feature. The income you receive has
the potential to go up automatically if you lock in a higher income base due to
investment growth of your fund value.
Here’s how the monthiversary feature works
At the end of every year after you take out your
plan, we look back to see what the fund value
was on the plan anniversary and each of the
corresponding monthly anniversaries – we call
these dates the monthiversaries.
This gives you 12 opportunities – every year you
have your plan – to lock in investment growth.
Let’s say at age 65 you invest £100,000 at the start
of your plan in pril. You would receive £4,000
guaranteed lifetime income (see pages 10 and 11).
After reviewing the 12 monthiversary values on your
plan anniversary, we see that the highest value was
in month eight (November) – the value was £105,000
on that date. We’ll lock this value in as your new
income base, and this growth is locked in for life.
Apr
£105,000
£100,000
Fund value £
Stop and think about that for a minute... your guaranteed income for life can go up and
you’re less likely to miss out on any of your plan’s investment growth.
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
£105,000
locked in income base
From the start of year two, £105,000 would be
your new locked in income base and this is the
amount we use to calculate your guaranteed
lifetime income in year two:
£105,000 x 4.00% =
£4,200 new guaranteed lifetime income
When we lock in a new income base it won’t go
down in the future unless you make any additional
withdrawals – but it could go up again. Every year
on the plan anniversary we review your income
base, so you could lock in a higher income base
year on year.
We don’t limit the amount your guaranteed
lifetime income could increase by.
12 Aegon Secure Trustee Investment
Guaranteed increases before
taking income
If you don’t want to take income straight away you don’t have to. On each plan
anniversary before you start taking guaranteed lifetime income we’ll automatically
increase your income base by at least 2.75% of your original premium – we call
this guaranteed pre-income increases.
Stop and think about that for a minute... your income base is guaranteed to go up
by a minimum amount each year.
However, as if that’s not good enough, here’s the
best bit. Our monthiversary feature locks in your
highest monthiversary value over the year if it’s
higher than the current income base plus 2.75%
of your original premium.
the current income base plus
2.75% of your original premium†
†
The amount your income base will increase by
depends on how your fund value performs. It will
increase to the higher of:
OR
the monthiversary lock-in value†
proportionately reduced for any additional withdrawals
Growing your income base
2.75% deferral story
Let’s say you invest £100,000 at the start of your plan at age 65, and don’t take income immediately. The
following graph shows how our guaranteed pre-income increases of 2.75% can grow your income base.
Original premium
2.75% guaranteed pre-income increase
£113,750
New locked-in income base
£111,000
£108,250
£105,500
£102,750
Total value £
£100,000
Original premium
£100,000
End of year 1
End of year 2
End of year 3
End of year 4
End of year 5
With our guaranteed pre-income increases, the income base has grown from £100,000 to £113,750, and
we lock this value in for life as your new income base. If you then decide to take income, your guaranteed
lifetime income amount would be based on £113,750. But it could be more, read our ‘Monthiversary
deferral story’ to see how.
Aegon Secure Trustee Investment 13
Monthiversary deferral story
Let’s say you invest £100,000 at the start of your plan at age 65, and don’t take income immediately.
The following graph shows how our guaranteed pre-income increases of 2.75% work with our
monthiversary feature to grow your income base in a varying market.
Original premium
2.75% guaranteed pre-income increase
Monthiversary increase
New locked-in income base
2.75% guaranteed
pre-income increase
value locked in
2.75% guaranteed
pre-income increase
value locked in
£114,750
Monthiversary
value locked in
Monthiversary
value locked in
£119,250
£112,000
Monthiversary
value locked in
£109,250
£105,000
Total value £
£100,000
Original premium
£100,000
End of year 1
End of year 2
As you can see, at the end of years one and two
the monthiversary feature locks in the highest
value as your new income base and this is what we
would base your guaranteed lifetime income on if
you decided to take income at this stage.
In years three and four the 2.75% pre-income
increases are higher than the highest
monthiversary igure so we lock in the guaranteed
pre-income increase value as your new income
If you invest £100,000 at
age 65
End of year 3
End of year 4
End of year 5
base and this is what we would base your
guaranteed lifetime income on if you decide to
take income at this stage.
Finally, at the end of year ive, the monthiversary
value is again the highest value and so our
monthiversary feature has grown your income base
to £119,250, and this is the value we would base
your guaranteed lifetime income on if you decided
to take income at this stage.
And decide to take income
at age 70
Age 70 = 4.40%
New income base
= £119,250
Yearly income for life
= £5,247 (4.40% x £119,250)
And remember, once we’ve locked in the higher value, we lock it in for life, and it will
never go down unless you take additional withdrawals.
Plus, don’t forget, you can opt to start taking income at anytime.
14 Aegon Secure Trustee Investment
Guaranteed death beneit
With our guaranteed lifetime income option there are two death benefit options
available to you:
Guaranteed death benefit
OR
Standard death benefit
Guaranteed death benefit
With our guaranteed death beneit option, you’ll have the reassurance of knowing that we’ll pass on any
money left in your plan to the trustees of your pension scheme.
When you die we guarantee to pay the higher of:
100.1% of the fund value
OR
the original premium less any
guaranteed lifetime income paid
from the plan†
†
proportionately reduced for any additional withdrawals
For example, if you originally invested £100,000 and then some years later died after receiving income
of £16,000, this would mean we’d pay out £84,000 or 100.1% of the fund value. For illustrative purposes,
let’s say at the point you died 100.1% of the fund value was £80,000 in this scenario we’d pay out death
beneit of £84,000.
It’s also important to remember, if we’ve paid more in guaranteed lifetime income payments than the
original premium and there’s no fund value, then there won’t be any money to pass on.
Standard death benefit
You don’t need to select the guaranteed death beneit. If you decide not to choose it, then you’ll receive
the standard death beneit option which is 100.1% of the fund value throughout the whole term of the
plan.
It’s important to remember if there’s no fund value, then there won’t be any money to pass on.
Aegon Secure Trustee Investment 15
Would you like to invest in
the markets without any risk
to your capital?
16 Aegon Secure Trustee Investment
Guaranteed capital
option
Guaranteed capital option
A look at how the guaranteed capital option protects your original investment
18
Capital escalator feature – giving you the potential to lock in investment growth
See how the capital escalator can lock in investment growth
20
Guaranteed death bene t
Read about the guaranteed death beneit option available and how it works
21
Guaranteed capital option
Guaranteed capital option
Would you like to be able to invest your money in the markets without the risk of
losing it, and have the potential for it to grow?
Well with Aegon Secure Trustee Investment plan you can do just that. By selecting
the guaranteed capital option, it allows you to protect your original premium at
the end of your selected guarantee period – we call this the guaranteed capital
term. You can select the length of the guaranteed capital term you need – this can
be anything from 10 through to 20 years.
At the end of your selected guaranteed capital term – not before or after – we guarantee your fund
value will be at least equal to 100% of your original premium – even if the markets fall (as long as you
haven’t taken any withdrawals from your plan).
£100,000
£90,000
£85,000
£80,000
£70,000
£75,000
£65,000
£55,000
£65,000
£75,000
Fund value £
Let’s say you invested £100,000, and selected a guaranteed capital term of 10 years. The graph below
shows how the capital guarantee could work.
1
2
3
4
5
6
7
8
9
10
£100,000
capital guarantee lock in
Guaranteed capital term (years)
As you can see, your capital would be protected during your selected guaranteed capital term – even
though the value of your investment has fallen over the 10-year period, the capital guarantee will return
your original premium of £100,000 at the end of your selected guaranteed capital term.
Stop and think about that for a minute... you’ll be able to invest in the markets without
the fear of losing any of your original premium at the end of your selected guaranteed
capital term.
And that’s not all, with our capital escalator feature your capital has the potential to increase. Have a
read through our ‘Capital escalator feature – giving you the potential to lock in investment growth’
section to ind out how this works.
You don’t have to cash in the plan at the end of the guaranteed capital term – you can keep it. However,
if you do decide to keep your plan your capital will no longer be guaranteed. In this circumstance, you
should know that the value of your investment can fall as well as rise and isn’t guaranteed. You may get
back less than the amount of your original premium.
18 Aegon Secure Trustee Investment
Would you like
the opportunity
to bene t from
investment growth
through our capital
escalator feature if
markets go up?
Aegon Secure Trustee Investment 19
Capital escalator feature – giving you the
potential to lock in investment growth
How would you like the potential to lock in any investment growth for the
duration of your selected guaranteed capital term?
Well you can with our capital escalator feature.
Here’s how this works
When you select the guaranteed capital option,
your original premium is set as your guaranteed
capital value. Every year during your selected
guaranteed capital term – on the anniversary of
your plan – we review your fund value. If it’s higher
than your current guaranteed capital value, we
lock in the investment growth and it becomes
your new locked in guaranteed capital value.
Let’s say you invested £100,000, and selected a
guaranteed capital term of 10 years. The graph
below shows how the capital escalator feature
could work:
1
£110,000
£100,000
Fund value £
New locked-in guaranteed capital value
2
3
4
5
6
7
8
9
10
£110,000
capital guarantee lock in
Guaranteed capital term (years)
In this example, when the markets were increasing
in the early years (two and three), we locked in new
guaranteed capital values. When the markets fall
(years four and ive), the locked in guaranteed
capital value doesn’t go down as it’s protected by
the guaranteed capital option.
The guaranteed capital value then increases again
to £110,000 towards the end of the selected
guaranteed capital term (year nine). The value at
the end of the selected guaranteed capital term
of 10 years, is £110,000 locked in at year nine in
this example – the new guaranteed capital value.
So, if you cashed in your plan at the end of your
guaranteed capital term you’d be £10,000 better off.
During your selected guaranteed capital term, there’s no limit to how much your
guaranteed capital value could go up, and once we lock it in it won’t go down (unless
you take withdrawals) and remember, it could go up again at a future review date.
20 Aegon Secure Trustee Investment
Guaranteed death beneit
With our guaranteed capital option there are two death benefit options available to
you:
Guaranteed death benefit
OR
Standard death benefit
Guaranteed death benefit
With our guaranteed death beneit option, you’ll have the reassurance of knowing that we’ll pass
on at least the original premium to the trustees of your pension scheme if you die within your selected
guaranteed capital term. We guarantee to pay the higher of:
the guaranteed capital value
OR
100.1% of the fund value
It’s important to remember that any withdrawals you take will reduce the amount payable and after
the guaranteed capital term ends, the guaranteed death beneit is 100.1% of the fund value.
100.1% of the fund value
9th
8th
7th
6th
5th
3rd
2nd
1st
100.1% of fund value £
Guaranteed capital value
4th
New guaranteed capital value becomes new death benefit if it’s higher than
100.1% of the fund value before the end of the guaranteed capital term
Plan anniversary
In this example, we locked in a new guaranteed
capital value after the review on the fourth, ifth
and sixth plan anniversary. If you died when this
value was higher than 100.1% of the fund value as
it is after the seventh plan anniversary, this would
be the amount we’d pay to the trustees of your
pension scheme. However, if 100.1% of the fund is
higher, as it is after fourth and ifth plan anniversary,
this would be the amount we’d pay.
Standard death benefit
You don’t need to select the guaranteed death
beneit. If you decide not to choose it, then you’ll
receive the standard death beneit option which
is 100.1% of the fund value throughout the whole
term of the plan.
It’s important to remember if there’s no fund value,
then there won’t be any money to pass on.
Aegon Secure Trustee Investment 21
Is a exible income stream
appealing to you?
22 Aegon Secure Trustee Investment
Guaranteed income
option
Guaranteed income option
A look at the amount of income you can receive
24
Monthiversary feature – potential to lock in a guaranteed bene t
See how this unique feature could provide a guaranteed beneit in the future
26
Guaranteed death bene t
Read about the guaranteed death beneit option available and how it works
27
Guaranteed income option
Guaranteed income option
Would you like to know what income you’ll receive every year no matter what
happens to the investment markets?
Well with Aegon Secure Trustee Investment you can do just that. By selecting
the guaranteed income option, you can receive a guaranteed income of 5% of
your original premium for 20 years – whatever the market conditions. And not
only that, you could benefit from any growth on your investment through our
monthiversary feature – we’ll talk about this in the next section.
Say you invest
£100,000
You take 5%
guaranteed income
20
years
= £5,000 every year
for 20 years
The guarantee period is the period starting on the start date and ending when we have paid guaranteed
income equal to 100% of the premium.
When you take guaranteed income, it will reduce the fund value by the amount of guaranteed income
taken out.
You should note that your fund value isn’t guaranteed, so it can fall as well as rise, but even if it falls to
zero, we’ll pay you back 100% of the original premium as guaranteed income.
Your guaranteed income won’t go down unless you take additional withdrawals.
Income flexibility – take less to last for longer
You can’t take more than 5% a year in guaranteed income, but you can take less for longer – for example:
Say you invest
£100,000
You take 4%
guaranteed income
25
years
= £4,000 every year
for 25 years
24 Aegon Secure Trustee Investment
nd because the future is unpredictable, we’ve built in flexibility to help meet
your needs. You can:
• invest now and take guaranteed income now;
• invest now and take guaranteed income later; or
• invest now, take guaranteed income now and then take a break before restarting
guaranteed income later.
Stop and think about that for a minute... no matter what you choose, you won’t lose any
of your original premium during your guarantee period and you’ll know exactly how much
you’ll get each year even if the investment markets go down, giving you income security.
And that’s not all. Have a read through our ‘Monthiversary feature – potential to lock in a guaranteed
bene t’ section to ind out how you could get a lump sum at the end of the guarantee period.
Aegon Secure Trustee Investment 25
Monthiversary feature – potential
to lock in a guaranteed beneit
How would you like the potential to lock in any investment growth during your
guarantee period?
Well you can with our monthiversary feature. This feature allows your investment
to potentially benefit from any market upturns by locking in investment gains
during the guarantee period.
Here’s how the monthiversary feature works
At the end of every year after you take out your
plan, we look back to see what the fund value
of it was on the plan anniversary and each of the
corresponding monthly anniversaries – we call
these dates the monthiversaries.
The difference between the highest monthiversary
fund value during the guarantee period and your
original premium is called the guaranteed beneit
amount. If your fund value at the end of the
guarantee period is less than the guaranteed
beneit, we’ll pay the difference to your plan so
that your total fund value is equal to the
guaranteed beneit. If your fund value at the end
of the guarantee period is more than the
guaranteed beneit, no additional amounts will be
paid to your plan. Please note, if you take
guaranteed income immediately, there’s less
chance you’ll lock in a guaranteed beneit.
This feature gives you 12 opportunities – every year during the guarantee period – to lock
in investment growth.
£105,000
£100,000
Fund value £
Remember, your fund value isn’t guaranteed, so it can fall as well as rise. The graph below shows how
the monthiversary feature could work.
Apr
May
June
July
Aug
Sept
Let’s say you invest £100,000 at the start of your plan
in April and take 5% guaranteed income for 20 years.
After reviewing the 12 monthiversary values on your
plan anniversary the following April, we see that the
highest fund value was in month eight (November) –
for example, the value was £105,000 on that date.
Oct
Nov
Dec
Jan
Feb
Mar
We’ll lock this value in and this growth is locked in
for the duration of your guarantee period. If there
were no other monthiversary lock ins throughout
the duration of the guarantee period, you’d receive
the following guaranteed beneit:
Guaranteed benefit payable
£105,000
(highest locked-in
monthiversary value)
26 Aegon Secure Trustee Investment
less £100,000
(original investment
returned as income)
= £5,000
guaranteed bene t
Guaranteed death beneit
With our guaranteed income option there are two death benefit options available
to you:
Guaranteed death benefit
OR
Standard death benefit
Guaranteed death benefit
With our guaranteed death beneit option, you’ll have the reassurance of knowing that we’ll pass on any
money left in your plan to the trustees of your pension scheme.
When you die we guarantee to pay the higher of:
100.1% of the fund value
OR
the original premium less any
guaranteed income taken from
the plan†
†
proportionately reduced for any additional withdrawals
For example, if you originally invested £100,000 and then some years later died after receiving income
of £16,000, this would mean we’d pay out £84,000 or 100.1% of the fund value. For illustrative purposes,
let’s say at the point you died 100.1% of the fund value was £80,000 in this scenario we’d pay out death
beneit of £84,000.
Once you’ve received a guaranteed income equal to your original premium, the guaranteed death
beneit no longer applies. If you’ve received all of your guaranteed income and there is a fund value
remaining, we’ll pay out 100.1% of the fund value in the event of death.
Standard death benefit
You don’t need to select the guaranteed death beneit. If you decide not to choose it, then you’ll receive
the standard death beneit option which is 100.1% of the fund value throughout the whole term of the
plan.
It’s important to remember if there’s no fund value, then there won’t be any money to pass on.
Aegon Secure Trustee Investment 27
What else is important to you?
Choice over where your money is invested
We select our range of portfolios carefully and review them regularly to make sure
that along with your guarantees you also have potential for investment growth.
And remember, you can lock in any investment growth on a yearly basis.
The funds you can choose from are:
• Managed Risk Portfolios;
• Core Portfolios;
• UK Fixed Interest fund; and
• UK Cash fund.
Managed Risk Portfolios invest in a mix of ixed
interest, equities and sometimes cash in order to
manage the risk levels within the fund.
Volatility is a measure of how much the returns
of an asset or portfolio luctuate over time.
Managed
Risk
Portfolios
Target
volatility
level
Average
expected
equity exposure
Defensive
5%
30-35%
Cautious
7%
45-50%
Core Portfolios are a mix of ixed interest and
equities with a target ixed interest/equity
allocation.
80/20 Core
Portfolio
Fixed interest
Balanced*
9%
60-65%
*The Balanced fund isn’t available if you select the
guaranteed capital option with a guaranteed capital term of
10 or 11 years.
70/30 Core
Portfolio
60/40 Core
Portfolio**
Equities
**The 60/40 Core Portfolio isn’t available if you select the
guaranteed capital option with a guaranteed capital term of
10 or 11 years.
UK Fixed Interest fund
The fund mainly invests in UK corporate bonds and UK government bonds, although it may also
invest in high yield bonds, overseas bonds and cash.
UK Cash fund
Our UK Cash fund, is a lower-risk investment than other assets such as equities and ixed interest
and therefore has lower expected returns.
Our lealet Your investment choice gives you more information on the choices available.
Your inancial adviser can also give you our Product charges lealet that shows the charges depending
on the guarantee(s) and fund(s) you choose.
28 Aegon Secure Trustee Investment
Access to your money – just in case
As your circumstances could change, plans you put in place now may not still meet your needs in
the future.
For that reason, you can take additional withdrawals at any time. You can take as much or as
little as you want, as long as you have enough money in the plan to cover them.
It’s important to know that taking additional withdrawals from your plan will reduce your future
guarantees proportionately. Depending on your fund value at the time you take the withdrawal(s) you
may get back less than you originally invested inancial adviser will be able to provide details of this.
When we say taking additional withdrawals will proportionately reduce the guarantees on your
plan we mean, for example, if you take an additional withdrawal that is equal to 10% of the fund
value, the guarantees will reduce by 10%.
You can also cash in your whole plan at any time. If you do this, you may get back less than your
original premium amount and any guarantees and beneits will stop.
Aegon Secure Trustee Investment 29
About us and how we help to
protect your investment
We first opened our doors in 2002 and have been helping people prepare for their
financial future ever since, with a wide range of innovative investment solutions
– including the manufacture of guaranteed propositions in the UK, Germany and
France – as well as traditional offshore bonds. Today, we manage approximately
£4 billion of funds for nearly 20,000 customers. We’re part of the Aegon Group, an
international provider of life insurance, pensions and asset management.
Aegon has businesses in over 20 countries around the world and around two million customers in the
UK alone. Working directly with these customers, employers and advisers, Aegon’s proud to be helping
people take responsibility for their inancial future.
We run a sophisticated, prudent risk management programme
that aims to allow us to honour the guarantees we make you.
Your financial adviser will be able to give you the details of how
we do this.
As well as having strong internal controls, as an Irish life company, we operate within both the Irish and
European regulatory framework. You can ind more details on this in our lealet Helping to protect
your investments.
If we become unable to meet our liabilities and if you’re habitually UK resident when the contract
started you’ll be covered by the provisions of the Financial Services Compensation Scheme (FSCS).
Insurance business of this type is generally covered for 100% of the value of the whole claim, without limit.
You can get more information about compensation arrangements from the FSCS at www.fscs.org.uk
30 Aegon Secure Trustee Investment
Aegon Secure Trustee Investment
Here’s a quick recap of Aegon Secure Trustee Investment. It could be suitable for
you if:
• you want a trustee(s) or administrators of a SIPP or SSAS to invest pension
money into a trustee investment plan on your behalf;
• you’ve at least £20,000 to invest but you can invest up to £1 million;
• you want a guaranteed lifetime income from age 55 or older;
• you want to guarantee your original premium for a term of between 10 and
20 years;
• you’d like to be guaranteed 5% income for 20 years – or choose to take less
for longer;
• you want to be able to pass on any money left in your plan;
• you want a choice of where you can invest your money; or
• you want to keep access to your capital – just in case.
If you don’t meet the eligibility criteria, or the different guarantees don’t appeal to you, then it’s unlikely
this product is for you.
We hope you’ve found this guide a useful introduction to Aegon Secure Trustee Investment, but we
understand there’s a lot to take in. It’s important you speak to your inancial adviser so they can help you
decide if it can help meet your needs.
They can also give you a key features document, which clearly sets out the product’s aims and risks and
provides more details on how it works and what you can expect from us.
Aegon Secure Trustee Investment 31
As Lead Partner of British Tennis, we’re
helping the sport to build a brighter
future. Our sponsorship is helping
to grow grass-roots tennis, develop
Britain’s future champions and support
tennis tournaments across the UK,
including the Aegon Championships
at The Queen’s Club.
Find out more at aegontennis.co.uk
Stay in touch:
aegon.ie
@aegonuk
Aegon UK
Aegon UK
Aegon UK
egon is a brand name of egon Ireland plc. egon Ireland plc, registered ofice:
2nd Floor, IFSC House, Custom House Quay, Dublin 1, D01 R2P9. Registered in
Ireland (No. 346275). Authorised by the Central Bank of Ireland and subject to
limited regulation by the Financial Conduct uthority. Details about the extent
of our regulation by the Financial Conduct Authority are available from us on
request. An Aegon company. www.aegon.ie © 2016 Aegon Ireland plc
DUB 00268461 08/16