LV= launches ‘Flexible Transitions Account’

Insurance, investment and pensions group LV= has launched a new retirement plan - Flexible Transitions Account - that offers people a wide range of pension investment options and choices to suit their individual needs.

The Flexible Transitions Account has revamped the Self Invested Personal Pension (SIPP) offering from LV=, giving financial advisers and their clients access to:

A straightforward, clearer charging structure.
A variety of investment options to suit differing client needs, including investing directly into LV= Asset Management highly rated funds and bespoke Discretionary Managers.
A wide range of accumulation and decumulation options (including Unsecured Pensions and Alternatively Secured Pensions).

Customers have the freedom to combine and switch between the range of investment options according to their retirement needs and aspirations, giving them greater control and flexibility.

And to celebrate the launch of the Flexible Transitions Account LV= is waiving its annual service charge until October 2009 for all accounts completed between 1 March 2009 and 30 September 2009. A customer investing £200,000 during March, for example, could save £525.

Ray Chinn, LV= Head of Pensions, comments: "There are a number of key factors evident which we have tackled head on by launching our Flexible Transitions Account. With many people currently facing uncertainty, especially those approaching their retirement, this is an ideal opportunity to introduce a one-stop pensions solution, with clear and affordable charges throughout the life of the plan, and the ability to choose investment elements relevant to their needs and outlook. As a mutual organisation with an expert investment management arm, it was fundamentally important for us to combine our expertise under one single wrapper, giving advisers and their clients the best of both worlds."

Three-dimensional retirement planning

By understanding the three stages of retirement planning, the Flexible Transitions Account has been designed to work as hard after the customer's retirement date as it does before.

During the ‘Accumulation' stage customers can consolidate all their pension arrangements within the Flexible Transitions Account. This means that not only will customers find it easier to track how their pension fund is performing under just one investment wrapper, they will also have access to the entire range of LV= investment options, and the level of flexibility that goes with it.

Customers are able to take pension benefits once they've reached the age of 50 (55 from 6 April 2010), forming the ‘Early Retirement' stage. Here benefits can be taken in two forms:

A Lifetime Annuity - giving a guaranteed income for life.

An Unsecured Pension (USP) - giving a non-guaranteed income, available until the age of 75.

Alternatively customers can defer taking benefits altogether until age 75.

For those customers who wish to leave their pension fund invested within their Flexible Transitions Account the options via the Unsecured Pension route are as follows:

Tax Free Cash (Pension Commencement Lump Sum) - usually 25% of the fund's value and then receive an income from the remainder of their fund.

Customers can also defer taking an income - allowing the residual fund to remain fully invested.

On reaching age 75, or ‘Later Retirement', customers can decide to:

Purchase a Lifetime Annuity.
Retain their Flexible Transitions account and take an income from their fund through an Alternatively Secured Pension.
Straightforward, clear charging structure

The new Flexible Transitions Account comes equipped with a simple charging structure so that investors know exactly what their pension is going to cost them on a day-to-day basis. The annual service charge is based on all assets held within the plan and covers services such as fee collection, administration of income payments, valuations, investment switches, HMRC reporting and PAYE (where appropriate). The first £100,000 will cost just 0.6% per year, with a sliding scale depending on the total amount customers invest.

Investment charges are also clearer. LV= offers a range of insured funds with charges from 0.1% to 1.25% per annum, and a discretionary management service via selected partners from just 0.6% per annum (with no additional transaction costs).

A wide range of flexible investment options

Through its Flexible Transitions Account LV= gives advisers and their clients access to some of the widest and most comprehensive investment choices in the market. The risk graded portfolios, discretionary fund managers and SIPP investments include:

18 funds run by the LV= Asset Management's specialist fund managers, including specific Managed Portfolios linked to client risk profiles, managed by LV= Head of Multi Manager Tom Caddick;

A range of over 75 directly linked external funds;
A direct link to the Fidelity Funds Network platform; and
A choice of 4 discretionary investment managers.

Ray Chinn continues: "Where once SIPPs were thought of as niche products, they have now taken centre stage. And it's not just our Flexible Transitions Account which can provides customers real benefits - advisers can utilise our PensionsQ fund analysis support and the Retirement Planner Investment Modelling Tool with their customers to help them realise their retirement aspirations. Alongside our ongoing unique service commitment - ‘Money where our mouth is' Tax Free Cash within seven working days or £1,000 to customers - we believe advisers will be hard pushed to find a more relevant and complete retirement solution."

For more information about the LV= Flexible Transitions Account visit lvadviser.co.uk