LV= Pension Portfolio

Name: Here's what you need to know about the LV= Pension Portfolio
Brand: LV=

Here's what you need to know about the LV= Pension Portfolio

Overview

The LV= Pension Portfolio and the LV= Junior Pension Portfolio give you the flexibility and choice to plan and save for your (or your child's) retirement. With access to our established Smoothed Managed Funds, it can provide a smoothed journey and help cushion your investments from the ups and downs of the stock market.

Key features

Key features of the Pension Portfolio

Provides access to a wide range of investments that help to build your retirement savings.
Access to our range of multi-asset Smoothed Managed Funds, designed to reduce the impact of market ups and downs.
Around 5,000 Mutual Funds available from around 100 fund managers, as well as a wide range of other investment options including solutions developed by leading Investment Managers.
A full range of drawdown options available when you come to taking your Pension (at least aged 55), including accessing your tax-free cash.
See how your Pension Portfolio is performing through our customer portal, My LV=.

Important information

Investing money can be rewarding, but it comes with some risks. Here's what you need to know:

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Embark Investments Services Limited is the platform provider for the LV= Pension Portfolio and LV= Junior Pension Portfolio.
These are stock market-related investments, available to UK residents.
The value of your investment may go down as well as up, so you could get back less than you paid in.
Your retirement income may be less than you expect if investment growth over the lifetime of the Pension Portfolio, or annuity rates at the time you take your benefits, or both, are lower than expected.
Your retirement income may be less than you expect if you reduce, or stop payments into your Pension Portfolio.

The charges we take for administering your Pension Portfolio will affect the value of your Pension Portfolio.
If you decide to leave your financial adviser and do not appoint another one, your options to manage the Pension Portfolio may become restricted.
Over time, inflation will reduce the buying power of the money you have saved.
Your Pension Portfolio value may not be enough to provide the level of income you need for as long as you need it, in instances where you take an income higher than planned.
The income you take from your Pension Portfolio may be subject to Income Tax and may affect any means tested benefits you might receive.

The smoothing process in our multi-asset Smoothed Managed Funds may need to be suspended to protect our members and us. This might happen when the underlying daily fund price becomes less than 80% of the smoothed price or in other exceptional circumstances.

The information on this page should not been seen as advice to take out this product, please speak to a suitably qualified financial adviser before making any investment decision based upon this, or any other information.

Investing in the LV= Smoothed Managed Funds Pension

Designed to grow your money while providing you with a smoother investor experience.
Our smoothing process is designed to help level out the peaks and troughs of stock market investments.
Choose from a range of funds to invest in, with the help of your financial adviser.
You can use it as a standalone investment, or alongside other investments in a bigger portfolio.
You will gain access to LV= Member Benefits, such as LV= Doctor Services and discounts on LV= general insurance products.*

*General insurance products are offered by Liverpool Victoria General Insurance group, a subsidiary of Allianz Holdings plc.

Our smoothing mechanism explained

View video transcript

Are you looking for an investment option that aims to grow your fund while providing a calmer experience?

Our Smoothed Managed Funds have a built-in mechanism designed to provide you with a calmer investment journey by averaging out the traditional peaks and troughs of stock market investing.

We call this smoothing.

Here’s how it works.

On day one, your money is invested into your chosen fund(s) at the underlying daily fund price.

On day two the underlying daily fund prices for day one and day two are added together and divided by two.

On day three the underlying daily fund prices for all three days are added together and divided by three, and so on.

This process continues for 26 weeks - approximately six months.

After this, your investment value becomes a rolling average of the underlying daily fund prices over the previous six months.

This means if markets are growing, you will see smoothed fund prices increasing at a slower rate than the prices of unsmoothed funds.

But, if markets are falling or fluctuating, you won’t see the same sudden drops or changes to your smoothed fund value as you would in an unsmoothed fund.

Our robust smoothing mechanism has allowed our members to experience calmer investment journeys since it was first launched and it has remained stable throughout difficult market conditions, including the 2008 financial crisis and the 2020 COVID-19 pandemic.

You may find this valuable if you’re nearing retirement, you’re already taking a retirement income, or simply want to reduce the impact of stock market volatility on your investments.

As a mutual we’re here for our members, and our smoothed funds are designed to reduce the stress that can come with investing while supporting you to reach your financial goals.

Please remember our smoothed funds are a stock market related investment and while we aim to grow your investment, you could get back less than you paid in.

Speak to your financial adviser to discuss how LV’s Smoothed Managed Funds could be right for you.

Although it’s unlikely, we may need to suspend the smoothing mechanism at some points, to protect our members and our business. We might need to do this if the underlying daily fund price becomes less than 80% of the smoothed price, or in other exceptional circumstances.

If we did have to do this, the smoothed fund(s) you’re invested in would be valued using the underlying daily fund price or, if needed, on a daily gradual averaged price until smoothing is reintroduced.

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Documents

Important documents, specifically created for you

Here you can find documents related to our Pension Portfolio, it's important you read and understand them.

View all of our useful documents and guides

Other products

LV= ISA Portfolio

LV= JISA Portfolio

General Investment Account

Next steps

Getting the most from your money

To help you get the most from your money, you can speak to a financial adviser. If you don't have a financial adviser you can find one near you on unbiased.co.uk, or you can have a chat with one of our investment advice specialists.

Please note that the information given on these pages should not be seen as advice to take out this product.