Vitality has entered the long-term savings market with the launch of VitalityInvest.
Through its Investment Booster, Retirement Booster and Healthy Living Discount VitalityInvest will incentivise simple behaviour changes to encourage people to live healthier lives while saving more.
The launch aims to address the challenges of an ageing population in poorer health and also the concerns about the ability to fund retirement.
Herschel Mayers, CEO of VitalityInvest and VitalityLife said: “Solutions currently available in the investment market are not fit to adequately prepare us for the retirement of tomorrow.
“People are living longer and want more from later life, yet many don’t start saving soon enough to fund those extra years or take steps to ensure they arrive there in good health.
“We believe VitalityInvest is the solution. It is a unique approach founded on positive behavioural change that brings together saving and wellness. By changing behaviour, we produce economic and health benefits that are good for our members, good for advisers, good for us and good for society. We call this shared value.”
Through VitalityInvest’s Investment Booster customers are encouraged to save sooner and for longer. A boost of up to 15% to savings over 25 years, including growth, is awarded at no additional cost. The boost will be applied every five years to a customer’s savings in Vitality funds, over and above any investment returns.
Many retirees also struggle to manage their pensions in later life, spending too much too quickly leaving their final years financially challenging. VitalityInvest’s Retirement Booster said it addresses this. It helps customers manage their income and health in retirement, by awarding annual boosts to their retirement drawdown pot of up to 50% of income drawn.
Mayers concluded: “At Vitality, our approach is to only ever enter a market if we are confident that we can make a positive difference to our members’ lives. With this different range of savings products, I sincerely believe we can.”