Rockingham bonds with MetLife Europe
METLIFE Europe is to offer its offshore guaranteed investment bond (GIB) to investors in Peterborough-based Rockingham Retirement’s Retirement Income Triple Investment Account (RITA).
RITA, which was launched earlier this year and, according to Rockingham, has already proved popular with clients, is a 10-year temporary annuity wrapped in a Self Invested Personal Pension (SIPP)
The GIB offers guaranteed withdrawals of five per cent of the secured investment every year for the 10-year term of the bond. The minimum investment is £10,000 and it has a maximum premium of £1.5 million.
Rockingham’s RITA offering was created as an alternative to conventional annuities. The plan offers a choice of three investment options that provide a range of fixed income levels and growth potential. The product is offered through Rockingham’s SIPP wrapper, for which there is no additional charge.
Laura Goodman, director of corporate communications for Rockingham Retirement, said: “The MetLife bond offers the valuable benefits of 100 per cent capital guarantee, guaranteed withdrawals for the term of the bond and guaranteed death benefit – it does precisely what it says on the tin.
“Because we provide a free SIPP to all our RITA customers, this makes it an ideal wrapper for the bond that will fulfil many of our clients’ wishes for an affordable and transparent product.”
While the RITA platform has been successful for Rockingham, there will be unease from some quarters regarding the products on offer. Comprising a with profit fund, a life settlement-backed fund and a structured product, the RITA platform is likely to be tarnished by the bad press all of these product types have received.
Rockingham managing director Steve Hunt asserted that all the products available through the RITA provide strong options for investors that compare favourably with direct equities or annuities investments.
“I believe RITA is the perfect at retirement product for everyone whether their fund is £30,000 or £3 million. The same principals of not taking risk in retirement apply equally to the wealthy as they do to the poor, possibly more so,” said Mr Hunt.
Dominic Grinstead, managing director, MetLife UK branch, said: “We are committed to supporting innovation in the retirement income market and Rockingham Retirement’s RITA product is a perfect fit for our product range. “The decision by one of the UK’s largest independent retirement income specialists to put our product range on their panel and to offer our GIB to their clients is testament to the success of our enhanced product range and demonstrates our ongoing commitment to expansion in the IFA market.”
Laura Goodman says ‘it does precisely what it says on the tin’ when referring to the MetLife Guaranteed Investment