Investment, protection and retirement specialist LV= has announced significant enhancement to its Fixed Term Annuity, LV= Fixed Term Annuity for customers and LV= Fixed Term Investment for trustees, delivering greater value for clients who want to use their pension fund to provide a guaranteed level of income for a chosen number of years.
All new Fixed Term Annuity customers will be eligible for a mutual bonus award after the first 12 months – the first Fixed Term Annuity product in the market to offer members a share in business success.
LV’s mutual bonus is a way of rewarding eligible members for their support of the development and growth of the business and since 2011, it has distributed over £300 million.
In 2023, LV= distributed £20 million in mutual bonuses to eligible members.
New customers will also receive immediate access to LV= member benefits and additional support services, like LV= Doctor Services.
The upgraded offering also provides optional streamlined death benefits to give better protection for beneficiaries. This includes value protection and the ability for the plan to be transferred to a new beneficiary, offering more security and control over financial planning. New customers can choose terms ranging from 3 to 25 years, with the flexibility to adapt their plans as circumstances change.
Moreover, the Fixed Term Annuity is still just as compatible with LV’s range of flexible investment options, like Smoothed Managed Funds*, meaning clients can benefit from an innovative combination of guaranteed income and investment flexibility.
With these enhancements, LV= continues to evolve its retirement solutions ensuring clients have access to secure and adaptable income options that align with their long-term financial needs.
The latest research from LV= reveals more than two in five (41%) non-retired UK adults are reportedly uncertain about how they want to access their retirement income. A Fixed Term Annuity could be an appealing solution, providing the security of a regular retirement income while maintaining flexibility for future financial decisions.
Sarah Hills, Wealth Proposition Director at LV=, said:
"These enhancements strengthen our Fixed Term Annuity offering, delivering greater value for new customers. With streamlined death benefit options and compatibility with our range of flexible investment options, this product will provide customers with greater security in their retirement.
Our new Fixed Term Annuity will continue to provide flexible retirement solutions, like Guaranteed Income Drawdown, which enables customers to combine guaranteed income from an annuity, investment growth from our renowned Smoothed Managed Funds and provides valuable LV= member benefits.
The value of your client’s investment can go down as well as up and they may get back less than they invest.”
Key features available in this upgraded offering include:
- Eligibility for LV’s mutual bonus and member benefits.
- Streamlined death benefit options (Value Protection and Plan Protection).
- Maintaining compatibility with LV's Smoothed Managed Funds* through its Guaranteed Income Drawdown Solution.
- Terms available from 3 to 25 years with the ability to adapt to changing needs.
- Conversion feature allowing clients to end their plan early and convert to any other retirement product or take it as taxable cash. Tax-efficient growth potential with income and investment growth remaining within the SIPP bank account.
The announcement follows LV's recognition as Best Pension Drawdown Provider 2024 by The Times Money Mentor awards, where judges praised LV's "wealth of knowledge and insight about risks, advantages across drawdown considerations, as well as alternative options."
The Fixed Term Annuity forms part of LV's broader retirement proposition for new customers, allowing them to blend secure income with flexible investment options through the Guaranteed Income Drawdown solution, while benefiting from LV's established investment expertise and commitment to its members.
To find out more about LV's Fixed Term Annuity or range of retirement products, please email [email protected]
Notes to Editors:
* For our Smoothed Managed Funds range, the value of your client’s investment can go down as well as up, and they may get back less than they invest.
For further information please contact:
- Contact our press office
- [email protected]
About LV=:
LV= is one of the UK’s leading life and pensions mutual insurers, serving over one million members and customers. As an investment, protection, retirement and in-house advice specialist, LV= offers a range of products and services to help members and customers protect their income while they’re working and maximise it when they stop.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited (LVFS) and LV= and LV= Liverpool Victoria are trading styles of the LV= Group of Companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.
