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LV= launches new investment option for pension clients

Press release: 08/07/2014

Retirement specialist LV= has launched a new investment option available via its self-invested personal pension and its personal pension.

The Flexible Guarantee Funds provide clients with the potential for an investment return and are averaged price1 to help smooth and reduce the effects of market volatility. The option also offers savers flexibility as they are able to disinvest, take income and switch to different investments as circumstances change.

Clients can choose to buy a guarantee which ensures that the value of their investment at the end of their selected guarantee term will be at least the same as their initial investment (less any withdrawals taken). Clients are able to add or remove the guarantee at any time and can choose to buy a new guarantee in order to lock in any growth their fund has achieved.

Clients can invest between £5,000 and £500,000 with a minimum guarantee term of five years and have a choice of three funds; the Cautious Series 2, Balanced Series 2 and Managed Growth Series 2.

LV=’s investment option can be used in a drawdown context which allows those clients with smaller pots to consider it as an alternative to annuities – providing them with control of their investments but with some reassurance against market volatility through both the smoothing and guarantee features.

The funds’ features mirror those available through the LV= Flexible Guarantee Bond and also provide clients with a guaranteed death2 and terminal illness3 benefit.

Richard Rowney, Managing Director of LV= Life and Pensions said: “This investment option has been introduced to help advisers and their clients take advantage of the new pensions landscape. The range of options our Flexible Guarantee Funds offer can help clients to plan effectively for their retirement and structure their income in a way that suits their needs. Recent research we carried out after the Budget highlighted that many retirees had a desire for income security in retirement and a level of flexibility.

“These fund options meet a real consumer need and will be an attractive proposition for those advisers with clients who want income certainty without being locked into a lifetime annuity. The certainty that the guarantee provides will particularly appeal to those clients who have a target retirement date and want to be sure that, when they reach retirement, the value of their investment will not have fallen.”

“This development demonstrates our commitment to innovation and improving customer outcomes. We continuously strive to develop retirement income options which enable advisers to put forward the best pension solutions to their clients.”

For further information please go to LV.com/adviser.

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Notes

  1. LV= uses a rolling 26 week averaging period
  2. Death benefit depends on age at the time of the initial investment into the Flexible Guarantee Fund
  3. Terminal illness benefit is payable on diagnosis of a terminal illness and where life expectancy is no more than 12 months

About LV=

LV= employs 5800 people and serves over 5.5 million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trade unions.