New product enhancements announced

Control

AEGON has announced a number of new enhancements to its ‘5 for Life’ retirement solution.

Launched in September 2006, ‘5 for Life’ is a completely new type of investment product in the UK aimed at customers who are nearing or at retirement. ‘5 for Life’ offers investors control of their fund and certainty of income, for the rest of their life.

Until September 2006, investors in the UK tended to look at two traditional choices when approaching retirement. Collective investments – which provide complete control of investments, but no certainty of income, or a purchased life annuity, which offer certainty of income, but no control of investments. AEGON successfully bridged this gap and brought the new variable annuity concept, a mainstay of the US at-retirement market, to the UK.

While other variable annuity style products, aimed at the “pension” market, have emerged. AEGON’s ‘5 for Life’ is still the only product of its kind in the UK that meets the needs of those approaching retirement that is not a pensionable product.

From 29 October 2007, investors in ‘5 for Life’ will have access to 50 new funds* with three different investment approaches, to suit customer needs. These investment approaches are:

• The core approach – using AEGON’s existing four tailored portfolios
• The multi-manager approach – using AEGON’s four tailored multi-manager portfolios selected in conjunction with Morningstar
• The portfolio construction approach – using a range of specialist sector funds from some leading fund managers

*Further information on these new funds is attached.

In addition to increased fund choice, customers in ‘5 for Life’ will also now benefit from a new money back guarantee. After the tenth anniversary, customers are guaranteed to get back at least the money they invested – less any income taken or the cash-in value if that is higher.

Commenting on the product enhancements, David Healy, Managing Director of AEGON Scottish Equitable International said:

“These new enhancements add even more control and certainty to the range of benefits 5 for Life offers customers at or approaching retirement. The variable annuity concept is gaining momentum in the UK market and we intend to make sure AEGON stays at the forefront of developments.”

In addition to improved fund choice and the 10 year money-back guarantee, AEGON has also developed a new portfolio investment tool for advisers. This online portfolio planner will assist advisers in the investment recommendation process and will help build a client specific investment strategy that will meet the customers attitude to investment risk. This free business tool is available on the AEGON dedicated ‘5 for Life’ website at www.fiveforlife.ie

David Healy concludes:

“In making these changes we have increased control, certainty and flexibility for customers, but we are also aware that our adviser partners need greater control and flexibility around the advice and recommendation process too. We have built this portfolio planner to help advisers in this process. We believe it will save considerable time and money and will also give advisers the opportunity to revisit their client’s investment strategy over time and make further alterations to continually meet their changing investment needs.”

Notes to Editors

‘5 for Life’ offers investors a guaranteed income for life of 5% of invested capital from age 60 with the added benefit of allowing them to easily access their remaining capital at any time, should they require this.

Because people are living longer and healthier lives, financial planning for retirement is becoming increasingly difficult and there is a real risk that people may outlive their assets in retirement. For a 60 year old male taking 5% withdrawals from an onshore bond each year, there is currently a 1 in 3 chance that he will outlive his assets.

AEGON’s ‘5 for Life’ addresses this risk as it bridges the gap between the guaranteed income of an annuity and the flexibility of an investment bond. This will become a key component of people’s retirement portfolios alongside their annuity and their investments.

• While benefiting from the guarantee of 5% income from a customers investment for life, ‘5 for Life’ also provides the potential for investment growth. At certain times growth can be ‘locked-in’ which will in turn provide a higher guaranteed income for the customer Income can only be taken from ‘5 for Life’ at or after age 60
• ‘5 for Life’ is a guaranteed minimum lifetime withdrawal benefit. Income paid is created from the initial investment made. If additional withdrawals are taken this will reduce future income payments and death benefits.
• The guaranteed minimum death benefit is the higher of:

• The total contributions paid less the total withdrawals taken, or
• 100.1% of the surrender value of your plan

AEGON UK has assets under administration of £45.2 billion and employs around 4,000 staff. AEGON UK is part of the AEGON Group, which is one of the world’s largest listed insurers and has assets around Euro 359bn (£250 billion).

For further information

Kevin Brown
AEGON Press Office
T. 0131 5492859 | M. 07740 897282
Kevin.brown@aegon.co.uk

Mark Locke
T. 0131 549 3766 | M. 07740 897 541
mark.locke@aegon.co.uk