LV= launches Pension Income Plus Annuity

Monday, 07 November 2011 01:58

Insurance and retirement products provider LV= has today (November 7th 2011) announced the launch of its new Pension Income Plus Annuity (PIPA).

This is an investment-linked lifetime annuity that is available on standard or enhanced terms so that clients can enjoy both a high level of initial income and a minimum income guarantee set at the zero per cent assumed investment return (AIR) level.

People taking out the PIPA can select an AIR of between zero and four per cent and are also protected by a guarantee that the starting level of income will not reduce for the first two years of the policy.

Should investment yields increase, the guaranteed minimum income also goes up.

Anyone taking out the PIPA can vary the AIR or convert to a non-investment linked conventional annuity after two years.

LV= head of annuities Matt Trott said people are currently looking for alternative solutions to standard lifetime annuities.

"For those looking for a bit more flexibility, our fixed term annuity (the protected retirement plan) or PIPA provides another choice before drawdown becomes appropriate," he added.

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