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LV= Pension Specialists

Chat to us about your pensions

Call us on 0800 032 9301

Lines open: 8.30am to 6pm Monday to Friday.

What your retirement could look like

The videos below are just some of the options available to you. Although they are not based on real life people, they can help you work out the best options to suit your retirement needs.

The figures stated in the video are for illustrative purposes only and are not based on current income rates and investment returns which may be more or less than the ones shown in the videos. Telephone numbers and websites mentioned are also fictitious and not connected with LV= in anyway.

Retirement Wizard

Introducing Retirement Wizard

John Perks, Managing Director of Retirement Solutions talks about LV='s Retirement Wizard. He explains how the online advice tool works and how it can help you with planning for your retirement.

Video transcript

Hello and welcome to LV=.

We’ve created the LV= Retirement Wizard to help you make sense of the options open to you as you look forward to a very modern and happy retirement.

Depending on where you are on your retirement journey, LV=’s Retirement Wizard can offer either professional financial advice or a simple overview of your options for income at retirement, and all from the comfort of your own home.

Our online advice service is designed for those within 3 months of accessing their pension pot and wanting to turn their funds into an income for retirement We’ll shop around from a range of leading providers to find the right deal for you providing recommendations on specific products and providers to meet your individual needs.

We’ll even set up your retirement products for you, dealing with your existing provider to make this process easy for you. We’ve used the expertise of our own advisers to design and build this clever tool to deliver full, regulated advice online to you at the fraction of the cost of a face-to-face adviser.

You can save your progress as you go along and come back to it at a time that suits you. And while this is an online service, don’t worry, there’s plenty of support if you need it: for example videos to answer any questions you might have and of course you can always pick up the phone to one of our professional advisers during office hours.

If you’re not quite ready to access your pension pot, but you’re looking to learn more about the options available for your income in retirement, you can use our Retirement Options Calculator to create a free Retirement Options Guide tailored to you. This includes the pros and cons of each option, as well as ideas on how to boost your retirement income and information on where to get financial advice. Thanks for listening and enjoy planning for your future.

Next Steps Retirement Wizard

John Perks, Managing Director of Retirement Solutions informs you about the next steps for your retirement. Whether that's talking to a financial adviser, speaking to an LV= financial adviser or using Retirement Wizard.

Video transcript

Hello and thanks for using LV= Retirement Wizard. I hope you’re finding your Retirement Options Guide useful and now have an understanding of the pros and cons of each option. Now it’s down to you. You’ve worked hard to build up your pension pot and it’s time to take control and get the most out of it.

If you’re within 3 months of wanting to access your pension, we strongly encourage you to seek professional financial advice before deciding which option you’ll choose to turn your pension pot into a retirement income. You can do this in a couple of ways.

You can find a financial adviser near to you and meet them face-to-face or you can try our Retirement Advice Service, which you can access online from the comfort of your own home. The cost of financial advice can be substantial as retirement income planning is very complex and takes time and expertise.

That’s why we’ve used the expertise of our own advisers to design and build a clever tool to deliver full, regulated advice online to you at the fraction of the cost of a face-to-face adviser. With our retirement advice service we’ll shop around from a range of leading providers to find the right deal for you, providing recommendations on specific products to meet your individual needs. We’ll even set up your retirement products for you, dealing with your existing provider to make this process easy for you. While this is an online service, don’t worry, there’s plenty of support if you need it; for example videos to answer any questions you might have and of course you can always pick up the phone to one of our professional advisers during office hours. Now down to the cost.

There is a fixed charge of £199 for your online advice report regardless of the size of your pension pot, with no obligation to go ahead and purchase the products we recommend. If you then decide you’d like LV= to arrange your products for you there will be a fixed fee of £499 to set up your products. We’ll design the right solution for you to help you get the most out of your pension pot.

We’ve been voted the Moneywise Most Trusted Provider for three years running by the people that matter the most, our customers. So trust us to help you get clear on your choices and secure the retirement you’ve worked so hard for.

Take a cash lump sum and guaranteed regular income for life

Single retiree taking out an enhanced annuity

Video transcript

This is Anne, she's 63 years old. Anne lives alone with her dog Charlie. She's a smoker and has been diagnosed with heart disease. Anne's got £45,000 saved for her pension and wants to make sure it'll last her for as long as she needs it to. She's decided not to take any tax free cash and instead use all of her savings to take out a guaranteed regular income for life, also known as an annuity. Anne discovered that because of her smoking and health issues, she could get higher payments. She's already drawing the state pension so by the time she stops working these two incomes should be enough to ensure the house keeps running for her and Charlie. That's Anne's story. If this is something you'd like to explore, talk to an adviser or get your online advice report today.

Married couple taking cash lump sum and joint life annuity.

Video transcript

Meet Bill, he's 67 years old. He's happily married to his wife Eve and looks forward to them spending their retirement together. Bill's worked as a vet for the past 20 years and still enjoys his job. He's got £80,000 in his pension pot and plans to take his full 25% tax-free entitlement of £20,000. He's going to use some of this money to take Eve on the cruise she's always dreamed about and use the rest to provide an income for life, on top of his state pension. Bill chose a joint life annuity, so that if he dies before Eve, she'll continue to receive an income for life. The payments will be slightly less but along with Eve's own pension, will be enough for her to live on comfortably in later life. That's Bill's story. If this is something you'd like to explore, talk to an adviser or get you online advice report today.

Taking 25% cash tax free and setting up a guaranteed income for life.

Video transcript

[VIDEO TITLE] Scenario One – Are you a Bill or an Anne?

[WHAT] So let’s take a look at Scenario One – choosing a guaranteed regular income for life – otherwise known as an annuity. Perhaps you are like Bill and plan to take your 25% tax-free lump sum and buy a joint life annuity, or like Anne, want to use all of your pension pot to secure a single life enhanced annuity.

[HOW]

So how would this work? You can take up to 25% of your pension pot tax-free, from the age of 55. You can do anything you like with this money; take that dream holiday, renovate your family home or simply pay off some debts. Or, you can decide not to take the lump sum but leave it with your total pension pot, like Anne in our animation. It’s totally up to you.

Next let’s look at taking a regular guaranteed income for life. Simply put, you can swap your pension savings – whether it is all of them or 75% after taking your lump sum – for a guaranteed income that pays out every month, at a fixed or increasing amount, until you die.

It’s also worth noting that your health plays a part in the type of guaranteed income you could receive. For example, if you have existing health problems, or are a heavy smoker or drinker, you may be eligible for what is called an enhanced annuity, which could pay out a guaranteed income of up to 30% higher than a standard annuity might.

[THINGS TO CONSIDER]

As with all pension scenarios and options there are a number of things to consider:

With a guaranteed income for life you’ll always know how much money is coming in and when – this means no surprises and is great for planning ahead. However if your personal or financial circumstances change you are likely to be locked in and won’t be able to change your mind.

It’s also worth considering that your monthly income payments might be worth less as time passes as a result of inflation. For example the cost of your weekly shop will gradually increase over the coming years, but your guaranteed income for life won’t. There is an inflation-linked option where your income increases every year, but your starting income is much lower than the fixed amount version.

Now I know life expectancy is a rather unpleasant thing to talk about but if you do live longer than expected, with this kind of lifetime annuity your payments will keep coming as you keep on going – they are guaranteed for life so it does what it says on the tin. You can also choose an annuity that allows your husband or wife to receive all or part of your income after you’ve passed away or even a lump sum. You can find more information about these on our website or speak to a financial adviser.

Finally, please remember that all pension income paid to you is subject to tax in line with your taxable earnings – it is taxed as income just like your work salary – so you need to factor that in once you have an idea of what your retirement income could be.

[SIGN OFF]

Thanks for watching and I hope that’s been helpful. If you have any questions please call an LV= Financial Adviser on 0800 022 3875.

Take a cash lump sum and leave the rest invested

Retiree takes 25% cash lump sum and leaves the rest invested

Video transcript

This is Joyce, she's 64. She lives alone, with her basic costs of living covered by her late husband's pension. Joyce enjoys her job as a part time bookkeeper, and plans to keep working for as long as possible. She's a proud mother, and would like to leave behind a legacy for her children one of whom is about to get married. Joyce has £30k in her pension savings and plans on using her 25% tax-free entitlement to help pay for her daughter's wedding. She'll leave the rest invested and hopes that over time her pension pot will grow. This should leave behind a good amount for her family to inherit - and the less she takes, the more there'll be for them. Her state pension will also start soon, meaning she'll have enough to live on for the time being. At any point Joyce can decide to change her mind and dip in to her pot, or draw a regular income. That's Joyce's story. If this is a scenario you'd like to explore, talk to an adviser or get your online advice report today.

Retiree takes 25% cash lump sum and leaves the rest invested

Video transcript

Meet Jack, he's just turned 55. Over the years he's saved a £80,000 pension pot. He's going to take all of his 25% tax free entitlement,jack plans to use this money to fulfil a lifelong ambition and start his own photography business. It'll be enough for him to buy a camera, laptop and software, as well as everything else he needs to get started. He'll leave the remaining £60,000 of his pension pot invested, hoping that over time it will grow. The income from his new business, plus his state pension from the age of 66, will provide enough money for him to live on comfortably. At any point Jack can change his mind and dip into his pot, or draw a regular income. That's Jack's story. If this is a something you'd like to explore, talk to an adviser or get your online advice report today.

Taking 25% cash lump sum and leaving the remaining invested

Video transcript

[VIDEO TITLE] Scenario Two – Are you a Jack or a Joyce?

[WHAT]

This scenario explores taking your 25% tax-free lump sum now, while leaving the remaining 75% of your pension savings invested – just like our animated customers Jack and Joyce.

[HOW]

So how would this work? You can take up to 25% of your pension pot tax-free, from the age of 55. You can do anything you like with this money; take that dream holiday, renovate your family home or simply pay off some debts. It’s totally up to you.

In this scenario, if you’ve taken all of your 25% tax-free allowance, you could leave the remaining 75% of your pension pot invested until you want or need it. You would still have complete control over your money, you decide when you’d like to access it and how you’d like to draw an income from it.

So when the time is right, you could take a regular income from it or withdraw chunks of money as and when you need them until your pension pot has gone. You could also swap some or all it for a guaranteed income for life. It’s your money, and you can decide how you want to use it.

While your money is invested, it does carry some risk however. Just like any investment your funds have the chance of increasing or decreasing. There are many pension investment products available, with varying levels of risk, so the longer you leave your money invested, the greater the chance it has of growing.

[THINGS TO CONSIDER]

As with all pension scenarios and options there are a number of things to consider:

You can normally only take your tax-free cash once, so when you come to use the rest of your pension pot you may not be able to take any more tax-free cash.

This means it’s even more important to plan and budget well with this scenario because you could find yourself running out of income if you live for a longer time than perhaps expected. When the money is gone, it’s gone, so you’ll really need to keep an eye on how fast you spend your pension savings and investment returns.

If you were to die before using all of your pension savings, these funds could be passed to your beneficiaries potentially tax-free.

Finally, please remember that all pension income paid to you is subject to tax in line with your taxable earnings – it is taxed as income just like your work salary – so you need to factor that in once you have an idea of what your retirement income could be.

[SIGN OFF]

Thanks for watching and I hope that’s been helpful. If you have any questions please call an LV= Financial Adviser on 0800 022 3875.

Retiree takes 25% cash lump sum and leaves the rest invested

Video transcript

Meet Cathy, she’s 65. While she doesn’t work anymore, her husband John earns enough for both of them to live on comfortably. She’s due to start drawing the state pension and plans to use it as a disposable income to treat herself shopping and spend while out with friends.

Cathy has £32,000 in her personal pension. She doesn’t feel she really needs an income from it at the moment. However she is planning to take all of her 25% tax-free entitlement to plan something special for their 20th wedding anniversary.

She’ll leave the rest of her pension pot invested, hoping that it will grow. Cathy knows if she decides to change her mind she can access her pension savings at any time.

That’s Cathy’s story. If this is something you’d like to explore, talk to an adviser or get your online advice report today.

Retiree takes 25% cash lump sum and leaves the rest invested

Video transcript

This is Harry, he’s 55 years old. He’s a self-employed landscape garden designer and earns a good income. Over the years Harry has saved £90,000 in his pension pot. He’s planning to continue working full time so he doesn’t need it to live on just yet.

Harry is going to take all of his 25% tax-free allowance and use it to pay off his mortgage. This will free up a large percentage of his income to use on more exciting things. The rest of his pension pot he’ll leave invested where he hopes it’ll grow.

Harry’s current plan is to retire from work in time to start drawing his state pension. This money combined with drawing a regular income from his pension savings should last him for the foreseeable future. He knows he can change his mind at any time and decide to access his money in a different way.

That’s Harry’s story. If this is something you’d like to explore, talk to an adviser or get your online advice report today.

Taking a flexible regular income drawdown

Video transcript

[VIDEO TITLE] Scenario Four – Are you a Harry or a Cathy?

[WHAT]

This scenario explores what it means to take a flexible regular income drawdown like Harry or Cathy – essentially enabling you to receive a regular income but one that is completely flexible to suit your changing needs.

[HOW]

So how would this work? You can take up to 25% of your pension pot tax-free, from the age of 55. You can do anything you like with this money; take that dream holiday, renovate your family home or simply pay off some debts. It’s totally up to you.

Whether you decide to take your full tax-free cash entitlement or not, with this scenario you can use your remaining pension pot to provide you with a regular income. And as it’s a flexible arrangement, you can increase, decrease or even stop your withdrawals at any point. Your overall pension pot is invested, so hopefully it’s always growing, minus any withdrawals you make.

There are many pension investment products available, with varying levels of risk, and it’s totally up to you which ones you choose to invest your pension in. It’s always good to remember that the longer you leave your money invested, the greater the chance it has of growing and of course there is always a risk you could lose money as well.

[THINGS TO CONSIDER]

As with all pension scenarios and options there are a number of things to consider:

It’s important to plan and budget well with this scenario because you could find yourself running out of income if you live for a longer time than perhaps expected. When the money is gone, it’s gone, so you’ll really need to keep an eye on how fast you spend your pension savings and the investment returns your product achieves.

If you are still earning, or have other sources of income, you can always keep paying into your pension pot with this scenario up until the age of 75 years old.

If you were to die before using all of your pension savings, these funds could be passed to your beneficiaries potentially tax-free.

Finally, please remember that all pension income is subject to tax in line with your taxable earnings – it is taxed as income just like your work salary – so you need to factor that in once you have an idea of what your retirement income could be.

[SIGN OFF]

Thanks for watching and I hope that’s been helpful. If you have any questions please call an LV= Financial Adviser on 0800 022 3875.

Take a cash lump sum and guaranteed income for a set period and then review options

Retiree takes 25% cash lump sum, then takes out a fixed term annuity

Video transcript

Meet Grace, she's 60. She’s worked as an independent hairdresser most of her working life. She's passionate about her job and loves keeping up with her clients but is keen to reduce her hours as she’s gets older.

Unfortunately over the last few years Grace has overspent on credits cards and accrued a rather large debt. The only form of savings she has is her pension pot of £60,000.

She’s decided to take all of her 25% tax-free entitlement to totally clear her debts. Grace will use another chunk of her pension pot to provide a fixed income for five years.

On top of part-time earnings this will bridge the gap until her state pension is due to pay out and she stops working completely. She can then reassess her options and decide what to do with the rest of her pension savings.

That’s Grace’s story. If this is something you'd like to explore, talk to an adviser or get your online advice report today.

Retiree takes out a fixed term annuity with their personal pension

Video transcript

Meet Samuel, he’s 62. He’s been a teacher all of his working life and feels ready to devote more time to his family so he’s decided to switch to part-time hours to help look after his grandchildren.

Samuel is fortunate in that his job as a teacher comes with a final-salary pension that’ll pay out when he’s 65. He also has another personal pension pot that he’s paid small amounts of spare cash into over the years.

On top of his part-time salary, Samuel will use his personal pension to provide him with a fixed income for three years. After three years he’ll be eligible for both his final-salary pension and the state pension, leaving him enough to live comfortably, and spoil his grandchildren every now and then.

That’s Samuel’s story. If this is something you’d like to explore, talk to an adviser or get your online advice report today.

Taking 25% cash lump sum and then setting up a fixed term annuity

Video transcript

[VIDEO TITLE] Scenario Three – Are you a Grace or a Samuel?

[WHAT]

In this video I’m going to explain the scenario of taking your 25% tax-free lump sum, then setting up a guaranteed income for a set period of time like Grace and Samuel – this is often referred to as a fixed-term annuity.

[HOW]

So how would this work? You can take up to 25% of your pension pot tax-free, from the age of 55. You can do anything you like with this money; take that dream holiday, renovate your family home or simply pay off some debts. It’s totally up to you.

When it comes to setting up a guaranteed income for a set period of time, there are some key decisions that need to be made. For example: how much of your pension pot you’d like to use – you could use all of your pot and get a higher income or just a chunk and get less of an income. It all depends on what feels right for you. Then you need to think about how many years you’d like the income to last; you can typically choose from 3 to 25 years. So as an example, you might be thinking of using 75% of your pension pot to give you an income for 10 years.

The next thing to consider is equally as important, and is referred to as the maturity value but don’t worry, it’s not as scary as it might sound! This maturity value is agreed and fixed at the start of the term – essentially it is what your plan will be worth at the end of the chosen term. It’s worth noting that the higher the income you’ve chosen to receive, the lower the maturity value you can expect as you can imagine would be the case – and vice versa.

At the end of the fixed term you can then decide what to do with the maturity value. All of the same options will be available, so you could decide to start taking a flexible income from it, or maybe buy a guaranteed income for life or select another fixed term annuity. It’s your money, and you can decide how you want to use it.

[THINGS TO CONSIDER]

As with all pension scenarios and options there are a number of things to consider:

With this scenario, if you were to die within the fixed term, the money you used for your fixed term annuity would die with you, potentially leaving nothing for any of your beneficiaries to inherit. However, there are ways to protect this from happening but we would recommend that you speak with a financial adviser to discuss them.

However if you were to die with any unused money in your pension pot, this could be passed to your beneficiaries potentially tax-free. The same might apply to unused money that you get back from the maturity value.

Please bear in mind that if you take a larger income during the fixed term, the remaining maturity value may not be large enough to provide you with a sufficient income in the future.

Finally, please remember that all pension income is subject to tax in line with your taxable earnings – it is taxed as income just like your work salary – so you need to factor that in once you have an idea of what your retirement income could be.

[SIGN OFF]

Thanks for watching and I hope that’s been helpful. If you have any questions please call an LV= Financial Adviser on 0800 022 3875.