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Investing in the LV= Smoothed Pension

All you need to know


The LV= Smoothed Pension offers a range of multi-asset funds that are available through our Self-Invested Personal Pension (Flexible Transitions Account)

Each fund is designed to grow your money while providing you with a smoother investor experience, so you can spend less time worrying about your investments.

  • Our Smoothed Pension supports investors of different ages, whether you're saving for your retirement, or accessing your pension to draw income.
  • You can use the funds flexibly as a standalone investment, or as a safer investment option within a bigger portfolio.
  • Our investments come with 100% protection from the Financial Services Compensation Scheme (FSCS).


  • The funds are 'with-profit', which means you'll get the benefit of the growth in the funds, as well as any additional with-profits member bonuses. 
  • Your investment could go down as well as up, so you could get back less than you paid in.


How does smoothing work?

Our simple smoothing process averages daily fund prices over the past 26 weeks. This process is designed to prevent you from feeling an immediate impact of sudden market shocks.

The LV= Smoothed Pension uses smoothing, a unique averaging method designed to help level out the peaks and troughs of the stock market.

When you invest in our smoothed funds, you'll begin to experience the benefits of smoothing from day two of your investment. Then, our smoothing process builds up to a 26-week average by cumulatively averaging the daily fund prices (underlying prices) over the time you've been invested.

Once you've invested for longer than 26 weeks, your fund value will be a rolling average of the last 26 weeks of underlying prices.

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Explaining our smoothing mechanism

View video transcript


As part of our Smoothed Managed Fund range, the LV= Smoothed Pension lets you...

Choose from a range of fund options

Tailor your investments with a choice of fund options:

  • Smoothed Managed Extra Cautious
  • Smoothed Managed Cautious
  • Smoothed Managed Balanced
  • Smoothed Managed Growth
  • Smoothed Managed Growth Plus

Benefit from our unique smoothing process

Smoothing aims to reduce the impact of short-term stock market changes. It builds up to a 26-week average of previous fund prices – you’ll experience the benefits of this from day two of your investment.

Once you’ve invested for longer than 26 weeks, your fund value will be a rolling average of the previous 26 weeks’ underlying prices.

Buy an optional 10-year guarantee

An optional guarantee is available for a 10-year term on our Smoothed Managed Cautious Fund investments.

This guarantees your investment's value on the 10th anniversary, will be at least the value at the guarantee start date, less any withdrawals and ongoing or ad-hoc adviser charges.

Make a lump sum investment

Invest lump sums from £5,000 to £1,000,000. Each new lump sum is invested into a new, separate policy.

Important Information

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

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  • It’s a stock market-related investment, available to UK residents up to and including the age of 89 at outset (note that maximum age at entry to our Flexible Transitions Account is 85 years attained).
  • Your investment could go down as well as up, so you could get back less than you paid in.
  • Our smoothing process won't prevent your investment from dropping in value. 
  • Smoothing can be suspended at our discretion if either the underlying price is 80% or less of the averaged price, or in exceptional conditions.  
  • There are costs involved in setting up and looking after your LV= Smoothed Pension, you can read more about the charges here.
  • If you withdraw more money than your LV= Smoothed Pension has grown by, the value will be less than you’ve put in.
  • If you invest in the Smoothed Managed Cautious Fund and select the optional 10-year guarantee, please be aware of the associated terms and charges.
  • There’s no minimum or fixed term. But this is a medium to long-term investment of at least five years – preferably 10 years or more.


Important documents, specifically created for you

We've produced some helpful documents to give you even more information about the LV= Smoothed Pension.

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 to you on, 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.