|Fund name||Investment Pathway||Statement
|Investment management charge|
|LV= Pension Savings Pathway Option 1||I have no plans to touch my money in the next 5 years||5||0.33%|
|LV= Pension Savings Pathway Option 2||I plan to use my money to set up a guaranteed income (annuity) within the next 5 years||4||0.24%|
|LV= Pension Savings Pathway Option 3||I plan to start taking my money as a long-term income in the next 5 years||5||0.11%|
|LV= Pension Savings Pathway Option 4||I plan to out take all my money within the next 5 years||2||0.16%|
“Accessing drawdown is a big decision for pension savers and poses many considerations and challenges for savers, particularly those who are choosing not to take financial advice and may not appreciate all the consequences of their actions.
“The FCA Investment Pathways provides sensible simplifications to help customers make their choices with both more clarity and less risk, and we’re pleased to be one of the first to implement the approach for the benefit of our customers and have achieved this despite all the disruption coronavirus has caused for financial services providers.
“LV=’s Pathway options have been designed to meet the FCA’s requirements and provide savers with simplified options about how to invest their retirement funds, supported by high quality guidance as part of the customer journey and with each fund taken through an in-depth selection process to match the objective selected by the customer. We think the four Pathways investment options will also appeal to financial advisers who are also looking to adopt a set of funds structured to align to their clients’ retirement needs, assessed against the four FCA outcomes.”
The FCA has proposed that consumers should be presented with the following options to help them pick a pathway solution:
Option 1: I have no plans to touch my money in the next 5 years
Option 2: I plan to use my money to set up a guaranteed income (annuity) within the next 5 years
Option 3: I plan to start taking my money as a long-term income within the next 5 years
Option 4: I plan to take out all my money within the next 5 years