Novia Financial has teamed up with Just Group to launch a guaranteed income solution product through the platform’s self-invested personal pension (SIPP).
The launch of the product means advisers using the Novia platform can now target a guarantee income for life, while investing the remainder of a client’s portfolio in more adventurous assets.
Novia and Just said this was the first time a platform-based SIPP had been able to offer a fully underwritten guaranteed income solution integrated inside a platform.
The product provides a personalised guaranteed income for life based on the client’s age, individual medical conditions and lifestyle factors. The firms said, by using the solution inside the SIPP, advisers could minimise income and inheritance tax liabilities on behalf of a client.
A death benefit starting at 75% of the initial investment is provided in the early years of a client purchasing the product and paid as a lump sum into the client’s SIPP cash account, which the firms said provided added security for investors’ dependents.
The solution also provides a cash-in value in the early years to meet a change in the client’s circumstances.
Flexibility and security
Novia CEO Bill Vasilieff said that, since pension freedom, there had been pressure on the industry to provide a solution that addressed flexibility and security in retirement planning.
“There is demand from investors who want a degree of certainty, but do not want to purchase a more restrictive annuity,” he said. “They are looking for new ways in which they can sustain a regular income.
“The technology and tools available in a platform SIPP mean an investor can invest to provide a sustainable income as part of a complete retirement strategy and benefit from the transparency, flexibility and consolidation that investing via a platform provides.”
Just Group director Stephen Lowe added: “This is the first of a new style of product that aims to deliver three key components of retirement planning – the security of an income for life combined with flexibility and death benefits.”