One of life's guarantees
We developed our guaranteed solutions with our customers in mind. When advising and recommending products we’re aware and understand that you and your clients had to take on the risk for savings and retirement. This can be ok when markets are buoyant but not so good when they’re not, and can lead to some difficult conversations. This was something we were keen to address.
We considered the changing demographics and looked at the market turbulence. Here are some interesting facts.
Demographic changes*
- From 1971 the UK population increased by 8% but those aged over 65 increased by 31%
- By 2031 the projected number of people over 50 is expected to be 27 million
- In 1990, the life expectancy of a 60-year-old male and female was 82 and 85 respectively. By 2035, it’s expected to be 91 and 93.
Market turbulence**
- Between 31 December 1999 and 31 January 2003, the FTSE 100 fell by 44.4%
- Between 31 January 2003 and 29 June 2007, it rose by 116.7%
- Within one month – from 30 May 2008 to 30 June 2008 it fell by 6.7%
We wanted to give you and your clients some things you can be sure of and value, and products that can perform regardless of how long a person lives or what the markets are doing.
*Office of National Statistics – November 2007; IA80 (c2010) mortality table and 2035 is based on 90% of the PA00 mortality table projected using mid-cohort improvement factors with a floor of 1%
** Lipper, using Hindsight 5 AEGON Scottish Equitable July 2008
