Metlife retirement portfolio

martinwh

Additionally, Metlife were in the UK some years ago and exited the market (in the guise of Albany Life). 3 US Insurers entered the guaranteed space (The Hartford, Lincoln and Metlife). The other 2 left the UK. To Metlife's credit they have stayed so far, but they would have no issue in leaving if they thought it wise.

martinwh

One other addition to GBadgers comment about MetLife standing firm and not increasing charges in 2008/2009. They actually increased the cost of the contract for new investors in Nov 2009, and reduced the guaranteed income rates. At the same time they inserted the clause to the T's and C's stating that they reserve the right to increase any charges or add new charges at any time (provided they give 2 months notice). Added with the complexity and lack of understanding of how they manage the couterparty risk, I'd be quite nervous of recommending this if I was an IFA.

gadgetmind

martinwh wrote: »

Added with the complexity and lack of understanding of how they manage the couterparty risk, I'd be quite nervous of recommending this if I was an IFA.

Agreed 100%. I wouldn't touch a product like this with even a small percentage of my portfolio. I'm amazed to see an IFA recommending something like this (not that I fully understand what it is!) as I thought this was mostly the pool in which banks circled.