Aegon has today set out a strategy to accelerate growth across its workplace, adviser and advice franchise channels, increasing platform assets under administration from £104bn in 2023 to a projected £135bn by 2028.
The provider is aiming to grow its workplace pension assets from £53bn at the end of 2023 to around £85bn by 2028, through growth across its master trust and GPP businesses, as well as through the services it offers the Aon Master Trust. Key to the growth is investment in more personalised saver journeys facilitating deeper engagement with members, as well as and transfers in, both of new schemes and of individual members’ pots.
Net inflows were £1.8bn in 2023, with Aegon projecting these will increase to £5bn by 2028. The provider says inflows are currently divided 60 per cent from existing schemes, 20 per cent from new schemes and 20 per cent from individuals transferring in their other pots. Flows are currently split evenly three ways between the Aon scheme, EBCs and corporate IFAs.
Aegon says that while it is the fifth biggest provider by assets, it is number three in terms of new schemes, across GPPs and master trusts.
It is also set to launch a new digital engagement proposition called Milo that aims to remain connected with the individual when they move employers. This will be launched later in the year.
The plans will be outlined at a webinar hosted from London by Lard Friese, CEO of Aegon, and Mike Holliday-Williams, CEO of Aegon UK, together with other senior leaders of Aegon UK.
Aegon UK’s adviser platform offers long-term savings and investment solutions to advisers and their customers. The company plans to focus on the 500 adviser firms that currently contribute around 70 per cent of the adviser platform’s gross flows. Aegon UK will invest to further enhance its proposition, while also simplifying technology and increasing automation to build on the leading online customer and adviser journeys already in place. The company aims to turn net flows of the Adviser platform positive by 2028. AuA on the adviser platform is expected to remain stable at above £50bn through 2028.
The Advice franchise, which includes Origen, offers financial planning guidance and advice to workplace platform customers and other corporate partners, including the recently extended partnership with Nationwide. By embedding the advice proposition in customer journeys, Aegon UK plans to deepen its relationship with its workplace customers and expand to other customer segments, while also further integrating its businesses and reducing costs.
Friese says: “Aegon’s ambition is to create leading businesses in investment, protection, and retirement solutions. Aegon UK is well positioned to capture the opportunities of the UK’s large and growing market for long-term savings and retirement solutions. I have great confidence in our UK colleagues to deliver on our plans to transform Aegon UK into a champion business.”