Offshore bonds explained in third way product guide

Offshore bonds and other wealth management tools are to be explained as part of a new guide to third way products.

Independent financial research company Defaqto is publishing the tool, which promises to lay bare the pensions schemes treading the middle ground between lifetime annuity and unsecured pension plans.

Insight analyst for wealth management at the group David Abbis notes the option has been available in the UK for a number of years, but suggests confusion has limited uptake of the investment vehicles.

"One particular problem is that the products with guarantees are not all the same product type," he explains, with offshore bonds, annuities, unsecured pensions among those covered.

Mr Abbis concludes: "The guarantees from each provider tend to be similar but each provider offers something a little different."

Sometimes referred to as Guaranteed Retirement Options, this approach to private wealth management might be popular with individuals seeing low returns on traditional pension funds.  ADNFCR-2318-ID-800086319-ADNFCR