LV=, the retirement and protection specialist, is introducing a tiered charging structure on its personal pension.
Charges on the LV= Flexible Transition Account will be reduced for customers investing more than £100,000, and a client investing £300,000 into an LV= pension would pay a total annual wrapper charge of £650 – saving £100 a year. Overall charges on pensions worth £50,000 will rise from 0.25% to 0.3%. The changes will be introduced on 3rd February 2020.
New tiered charging structure
| Investment amount
|| Old charge (0.25% to £1m – 0.1% over)
|| New Charges
|| 0.145% £1,450
*No charges are levied on investments amounts over £700,000. In this example using a £1m pension fund, 0.215% (£1,450) charge is applied to first £700,000 and none to remaining £300,000. The charge on the whole £1m pension is equivalent to 0.145% (£1,450).
The new charges apply on all contributions invested in LV=’s range of 220 insured funds, including passive and active funds. With investment charges starting from just 0.05% the fund range includes:
- LV= Smoothed Managed Funds with two unique levels of investment protection and reduced wrapper charge of just 0.15% when 100% invested in these funds. (LV= is waiving the first year pension wrapper charge of 0.15% for clients who invest 100% in our Smooth Managed Funds by 5 April 2020)
- Funds from five of the leading passive fund managers including Blackrock, Fidelity and Vanguard
- Discounted rates on many funds, including the LGIM Multi Index Funds for just 0.24%
- A selection of Environment Social Governance (ESG) funds – active and passive and with a range of different risk ratings
Clive Bolton, managing director at LV= Savings and Retirement, said:
“These changes are another example of how LV= is evolving to support mass-affluent customers in the post Pensions Freedoms market, and throughout 2020 we’ll be introducing a series of improvements as we continue to develop our range of pensions, investments and retirement products. These latest changes make the LV= more competitive, particularly for those with pension funds above £100,000.”