What are the recent changes to the Aegon Ireland guarantee solutions illustration growth rates?

Fund updates – March 2015

From 31 March 2015, we’re changing the growth rates you’ll see on your illustrations for our Aegon Secure guaranteed solutions.

What are growth rates?

Growth rates are used in personal illustrations for our products to provide an indication of the range of possible outcomes of what an investment might be worth in the future.  It is important to remember that these are based on assumptions and so are only estimates of what may happen. Actual returns may be more or less than those shown.

What we are doing

The Financial Conduct Authority (FCA) requires us to provide illustrations using a low, mid and high growth rate. The FCA also set maximum values for these growth rates, which are currently 2% (low), 5% (mid) and  8% (high).

We are also required to calculate the projections using rates of return that accurately reflect the investment potential of the product, based on the underlying assets of the funds you have chosen. These rates must not exceed the maximum rates set by the FCA.

Please note that we will review these assumptions regularly, at which point they could be revised upwards or downwards depending on market conditions and regulatory requirements.

The value of an investment and any income from it can fall as well as rise for a number of reasons, for example market and currency movements. You may get back less than originally invested.

What this means for you

Our new growth rates won’t affect what you will get back as this depends on actual fund performance, net of charges. 

The guarantees that we provide through our Aegon Secure solutions are not affected.

If you received an illustration before 31 March 2015 you'll notice a difference between it and any illustrations or post-sale information issued from 31 March 2015 due to the change in growth rates.

Our growth rates may differ to other companies’ rates

Each provider will decide what rates of return they think might be reasonable for different underlying investment types. This is based on their opinion of potential future returns. Again, it’s important to remember that these rates are only assumptions and are not guaranteed rates of return.

Your questions answered

If you have any questions about growth rates, please call our helpdesk on 08456 000 173 (Monday to Friday, 8.30am to 5.30pm)