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= responds positively to Treasury outcome on removing the requirement to annuitise by age 75

Press release: 09/12/2010

John Perks, LV= retirement solutions director, comments: "The new rules published today by the Treasury indicate a move to put the customer first with a more flexible and innovative approach. We applaud the key intentions behind this change and the desire to implement this legislation at pace. In a simpler regime people will be much more likely to build up savings and reduce the risk of them depending on the state. We believe that by removing the compulsion to buy an annuity at age 75 it will remove a barrier that is cited by many as a disincentive for people to save into a pension".

"The new rules on access to flexible drawdown for individuals with a lifetime pension of at least £20,000 should enable consumers to be more flexible with their pension savings, although we are yet to see how popular this option will be from either a demand or supply side.

"While we welcome the overall measures to simplify pensions income, the change to a maximum drawdown income of 100% of GAD will remove valuable flexibility, and could encourage people to take more income than they perhaps need to before the rules come into place, in a 'use it or lose it' move. We also believe that a tax rate on death benefits of 55% is too high, and could continue to put some people off. We appreciate the balance that the Treasury has had to find, and welcome the certainty that we, advisers and our customers will now have."


Notes:

LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies.

LV= employs around 4,000 people, serves over 4million customers and members, and manages around £7.9bn (as at 30 September 2010) on their behalf, via LV= Asset Management (LVAM). We are also the UK’s largest friendly society and a leading mutual financial services provider.

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. www.LV.com.