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LV= Flexible Guarantee Pension option

The LV= Flexible Guarantee Pension (FGP) option is a new component of our Flexible Transitions Account which offers clients better value retirement income.

Who might benefit from the FGP option?

In an uncertain economic climate, our built-in smoothing mechanism and optional 8, 9, and 10 year capital spot guarantees both add an element of protection to client investments.

For clients approaching retirement and looking to consolidate their pension savings with one provider, LV=‘s FGP option offers a reduced wrapper charge of just 15bps when funds are solely placed in FGF.

The following examples are of typical clients who may benefit from the FGP option

Client profile: Michael

  • Age 55 – 11 years away from retirement.
  • Wants to avoid short term market volatility.
  • A low to medium risk investor.

Investing £135,000 in LV='s FGF. Doesn’t opt for a guarantee immediately – happy that the smoothing mechanism provides suitable protection against market turbulence.

Wrapper charge - 15bps

Client profile: Mary

  • Age 58 – 7 years away from retirement.
  • Keen to avoid losing money in a market correction with insufficient time to recover losses.
  • A low risk investor.

Investing £100,000 in LV='s FGF. Opts for a ten year guarantee to protect the value of her fund up to, and into, retirement

Wrapper charge - 15bps

The FGP option could also appeal to clients who have a sizeable pension fund with another provider who are looking for a safe, low-cost way of protecting part of their fund against market volatility as they approach decumulation.

For clients who like to split their investment or switch into other funds in the future, our full fund range is still available at the regular wrapper charge of 25bps.

Our funds are managed to our mandate by Columbia Threadneedle Investments and have been independently risk rated by Defaqto*, Distribution Technology, and Synaptics to help you assess suitability.

Dynamic Planner
Defaqto
Synaptic Software

*Defaqto is a financial information business, helping financial institutions and consumers make better informed decisions.

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