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Catch up with the latest press releases from LV=

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Unfamiliarity stops advisers recommending investment linked annuities

Press release: 06/06/2012

Research carried out by retirement specialist LV= reveals that over a quarter (26%) of advisers do not include investment linked annuities in their retirement planning discussions with clients. Of these advisers, a third (33%) cite their unfamiliarity with the product as the reason they do not advise on them.

However, the findings reveal that more than a third (37%) of those who advise on investment linked annuities have seen a rise in popularity of these products in the last 12 months. Advisers say the most common scenarios where they recommend investment linked annuities are when their clients’ funds exceed £100,000 (24%) or if inflation proofing is required (30%).

Advisers believe the most important factors when deciding which investment linked annuity product is most appropriate for their clients are; how the starting income on an investment linked annuity compares with that of a conventional annuity (94%), and the past performance of the investment (92%). The quality of the service provided is also a major consideration for advisers (91%).

Michelle Cutler, LV= Head of Investment Linked Annuities said: "People are spending longer in retirement and for those about to give up work making their retirement income go further is a key concern. Investment linked annuities allow funds to continue to participate in future growth, and are a flexible alternative to standard annuities, so it is encouraging to see a rise in client interest for these products.

"Our research shows that for some advisers their unfamiliarity with investment linked annuities means they could be missing out on an opportunity for their clients. Providers need to build greater awareness of these types of products to help advisers feel confident in their discussions with clients."

LV= has re-launched its annuity microsite with a dedicated investment-linked annuity page. The site provides a link to a historic bonus calculator and includes a glossary explaining key acronyms used by investment-linked annuity providers, in order to make it easier for advisers to compare providers’ quotes.

For further details on the LV= range of flexible retirement solutions, insurance and investment products go to

Notes to editors

LV= conducted research online between 7 March 2012 and 23 March 2012, among 585 financial advisers who operate in the annuities market.

About LV=

LV= employs 5000 people and serves around five 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 trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG.

Registered address: County Gates, Bournemouth BH1 2NF.