Life Trust extends range of Longevity Income Plans

New Model Adviser, 4th August 2008

In the same week that rock legend Mick Jagger becomes and OAP, retirement provider Life Trust has expanded its range of Longevity Income Plans, which provide people living longer with a rising income.

Typically aimed at mid to high-net-worth individuals, the provider launched plans in January to offer people at age 75 or 80 a rising income for 20 years.

However it is now offering single premium investment plans for ages between 75 and 80, has reduced the minumum investment period from 10 to 5 years and introduced a surrender value option after two years.

Andy Briscoe, Chief Executive of Life Trust said the decision to expand the range of products was a result of adviser feedback. And he said that there was new interest within the retirement industry for mitgating longevity risk.

"I have been really impressed by the way that financial planners have got their heads around longevity becuase increasingly longevity is a new and very real change in people's lives. We see it as second in importance to global warming and as an issue in society that peole need to look at," he said.

Matthew Atchinson, an IFA at Northamtonshire-based OCM Wealth Management said diversifying the options for retirement was a positive step but warned that it was important to match clients' needs carefully against products.

I think it is definitely a good thing to increase the options out there. They are not going to be for everyone's taste but with the introduction of a lifetime allowance test on pensions and having all the options out there it is worth looking at", he said.

"Anything that adds to he selection of different solutions in an advisor's armoury is a good thing", he added.