Since the guaranteed solutions were launched we’ve gathered together the most frequently asked questions and answers.

If you have any more questions or want more information contact your AEGON Scottish Equitable access account manager on 0845 61 000 61 or your local consultant.

Why have we developed these guaranteed products?

We looked at the market turbulence and the changing demographics and realised that customers were taking the risk when investing or saving for retirement. We wanted to offer customers not only solutions that meet their needs but also something they value and products that can perform regardless of what the markets are doing or how long a person lives.

How can we provide the guarantees?

We’re part of the AEGON Group, one of the world’s largest life insurance and pension companies. We have a truly global perspective, drawing on the experience and expertise from around the world. This financial strength and expertise has allowed us to lead the way in developing a sophisticated hedging programme that tells us the most appropriate hedge assets to buy and hold to protect ourselves against market movements.

What are variable annuities?

Variable annuities, or ‘third-way products’ as they’re sometimes called, are unit-linked products that come with the option to buy guarantees. You can hold them in different products for example, pensions, onshore and offshore bonds.

There’s a range of guarantees available with variable annuity type products, which can be confusing. In the table below, we’ve summarised the most common guarantee types available.

Guarantee description	Features
Guaranteed minimum withdrawal benefits for life (GMWB)	Guaranteed income for life, guaranteed income can increase with fund value
Guaranteed minimum income benefit (GMIB)	Annuitisation at a fixed time on guaranteed terms
Guaranteed minimum accumulation benefit (GMAB)	Guaranteed minimum fund value at specific date, for example 5 or 10 years, there may be a mechanism to lock in gains
Guaranteed minimum death benefit (GMDB)	Return of investment or contribution, increasing death benefits

Please note that companies within AEGON UK plc, including AEGON Scottish Equitable and AEGON Scottish Equitable International, provide these products.