Changes to your investment income choices13 November 2017
With Aegon Retirement Choices (ARC), we offer income-generating funds that apply income from those investments into your wrapper’s cash facility.
From 20 November 2017, a new feature will give you the choice of how the income is to be treated. You’ll now be able to select one of three options. You could choose to:
- Remain in cash – our current offering and the default we’ll use if you haven’t made a choice. All income will remain in the cash facility and should be reviewed on a regular basis.
- Reinvest – any income is automatically reinvested in to the investment.
- Pay out as consolidated natural income – we’ll make a monthly payment to you, but only if income is received from investments. This is only available for ISAs and General investment accounts. You won’t be able to choose this option if you have an ARC Self Invested Personal Pension.
Investment income choices only apply to certain investments. Depending on your investments, the options might not be available to you.
Changing your investments could have a big effect on the final outcome of your savings. There’s no guarantee that investment objectives will be met. The value of an investment may go down as well as up and you may get back less than originally invested. If you’re in any doubt about it, you should get professional financial advice.
You, or your adviser, will be able to change your investment income choices through the switch journey. We’ve also created a new ‘maintain distribution choices’ screen on the online hub that can be submitted at any time.
Your adviser won’t be able to select how income is treated through the new business and top-up journeys. So if investments are made into any income-generating fund through these journeys we’ll set the default choice of 'remain in cash' to those investments. You, or your adviser, will be able to change this choice through the ‘maintain distribution choices’ immediately after your adviser has submitted the application online.
Yes. We’re also planning to update the switch journey video.
It’s a single payment we’ll make to you each month based on any natural income received, and which is available for payment in the cash facility of your product.
We’ll pay consolidated natural income on or around the 12th of each month. We’ll only pay consolidated natural income if the payment to be made is at least £2.50, otherwise we’ll hold the income in your cash facility until the amount reaches £2.50. We’ll then pay out at the next payment date.
The payments may fluctuate depending on the investments you hold. In addition, fund managers pay investment income at different intervals. Some pay investment income once a month, others pay every three months, every six months, or once a year. So depending on how the investments you hold pay investment income, will affect the amount we pay to you each month.