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LV= responds to the launch of the government's consultation into exit fees

31 July 2015 | LV= commentary


Richard Rowney, Managing Director of LV= Life and Pensions commented

“The pension freedoms give savers greater choice and flexibility as to how they take an income from their pension pot, but not all customers are being afforded the same level of access by their provider. We think that it is right that the transfer process and other barriers to exit are looked at so that everyone can easily take advantage of the new pensions landscape, and look forward to working with Government to make this possible. We believe that retirement advice remains the most effective way to ensure that pension savers make the most of their fund, especially if they are looking to transfer their pension as they may have valuable safeguarded benefits. However the cost of advice can damage the value of smaller pension pots and it is not always cost effective for advisers to offer these savers advice. In addition, the requirement to get advice can be seen as an unnecessary barrier, effectively leaving savers with no choice but to purchase an annuity from their vesting provider, which may not offer them the best rate or solution available. In order to help close the advice gap, we recently launched CORA, the first regulated online advice service designed to help advisers offer retirement advice to those with lower fund values.”

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