LV= improves Flexible Transitions Account offering

Leading retirement solutions provider LV= has improved its Flexible Transitions Account with a new wrapper charge, making the product more competitive.

Significantly, the new pricing will also be applied retrospectively to current Flexible Transition Account holders so more people are able to benefit - demonstrating LV='s commitment to its existing customers, as well as new ones.

The SIPP style Flexible Transitions Account was launched in March 2009 and offers customers a range of investment choices to maximise their options before and during retirement. Users of the product can choose from the most relevant options available at any point in time, including LV= pension funds and panel discretionary managers. In addition, the plan can accept multiple sources of investment including protected rights, and USP and ASP transfers.

The change means not only lower prices for the majority of customers, but also a simpler three tiered system. The new wrapper pricing structure is as follows:

First £75,000 at 0.55%
£75,001 - £1 million at 0.35%
Assets in excess of £1 million at 0.1%

Ray Chinn, head of pensions for LV=, commented: "This pricing change will benefit the vast majority of customers looking to invest in a modern, flexible SIPP product. In addition, we believe the three tier system will make advising on the product easier for IFAs.

"In order to be fair to existing customers, we are also extending this price reduction to those who have already taken out a Flexible Transitions Account with LV=, rather than reserving it for new customers only. We believe this is in line with the spirit of ‘treating customers fairly' and reflects our position as a leading mutual organisation that puts the customer first."