information

We use cookies to give you the best possible experience online. By continuing to use our website, you agree to receiving our cookies on your web browser. Visit our cookie policy page to find out more and how to change your cookie settings.

skip to main content

Catch up with the latest press releases from LV=

Large green heart

LV= response to the 2015 Budget

Press release: 18/03/2015

LV=’s Managing Director of Retirement Solutions, John Perks, on the Budget.

LV= on allowing retirees to cash in their pensions

LV= is supportive of the proposal, although it will not be an easy thing to do and we need to be mindful of the possible dangers for customers. Cashing in and spending an already poor value annuity will only worsen an existing problem. Likewise cashing in a good value annuity could also cause customer detriment. However, as part of the pension freedoms, it makes sense that all retirees should have the opportunity to achieve a better income outcome. We believe we can do more to understand the potential risks and benefits here. We have offered to work with the Government to help test the market, prior to determining the best longer term solution and we welcome the fact that they will be consulting to ensure that savers are adequately protected.

LV= on cutting the lifetime allowance to £1m

The freedoms that those approaching retirement will have from April will help to increase engagement with the pension industry and improve customer outcomes. This change is expected to impact just 4% of pension savers, many of whom will be in defined benefits schemes. For those that are likely to be impacted, it is important that they seek financial advice to ensure they get the best outcome. Regardless of whether these changes directly affect savers, it’s critical that they understand they are saving for a potentially long retirement so start as early as possible and regularly review their plans.

LV= on increased changes to the income tax charged on savings

These change serve to make savings accounts more attractive and encourage more people to save which can only be a good thing. However, these products don’t offer the same tax relief benefits as pensions. For those looking for a long term saving solution, pensions remain the most tax efficient vehicle available.

Share with...

What are these?

  1. Google +1