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Provides a secure income over a set term, with a guaranteed value at maturity

Protected Retirement Plan

At a glance

Unsure if the product is right for your client? Our table below sets out our product at a glance to help you make an informed comparison.

Fixed Term Annuity

Minimum age at entry - customer

55 (or at least 40 for early ill-health retirement or a protected retirement age)

Minimum age at entry - trustee

40

Maximum age at maturity

90

Eligibility

We can only accept funds from a UK registered pension scheme or QROPS and the Trustee version can only be held as an investment of a SIPP.

Term

Up to 25 years (minimum term applies)

Minimum purchase price

£10,000 (The amount after tax-free cash taken)

Applications over £500,000 are reviewed on an individual basis

Guaranteed maturity value

When the plan is set up, we’ll calculate the guaranteed maturity value at the end of the plan term. This is based on the purchase price, term of the plan and the options chosen.

The guaranteed maturity value depends on:

  • the size of the pension fund invested in a plan
  • the plan’s term
  • the client’s age
  • how much income they choose, if any, and when they choose it to be paid, for example, monthly
  • the death benefit options they choose
  • investment markets at commencement

This value is guaranteed at the start of the plan and isn’t subject to changes in investment conditions over the chosen term.

Investment methods

A plan can only be bought with pension savings:

  • from a transfer of un-crystallised benefits from a registered pension scheme
  • from a transfer of an existing drawdown pension fund
  • as an investment within a SIPP wrapper

Income

Your clients can:

  • choose to take a level income, an increasing income (up to 8.5% a year) or no income at all
  • for capped drawdown, choose an income which (subject to GAD limits) will be guaranteed whilst they're alive for the plan term
  • for Flexi-access drawdown, there is no maximum income limit as long as the selected amount is sustainable throughout the chosen term

Income frequency

Your client can choose to receive their income:

  • Monthly
  • Quarterly
  • Half-Yearly
  • Yearly

The first income payment can be paid either as soon as the plan starts (known as in advance) or at the end of the payment period (known as in arrears).

Value protection

This lets the client protect all or part of the fund used to buy the annuity when they die.

Beneficiary's Pension

Allows up to 100% of the plan’s benefits to continue to be paid to the client’s beneficiary after they die.

Guarantee period

Income guarantees of 1-10 years or term of plan. Paid as continuing income if a beneficiary’s pension is payable. Otherwise paid as an undiscounted lump sum. This lets the customer protect the income payable on their plan for a selected period or the full term of the plan.

Adviser charging

Initial charge

Extras

  • Option to transfer out at any time, using our conversion feature
  • Society member benefits

If you’re unsure if the product is right for your client, you can speak to the LV= Retirement Desk on 08000 850 250 or email us at [email protected] and we’ll be happy to help. Our lines are open from 8.30am to 5.30pm Monday to Friday. For TextDirect, first dial 18001.

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FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK