Liverpool Victoria (LV=) has expanded its retirement income offerings with a one-year fixed term annuity.
LV=’s new product will initially be available for a period of six weeks, and will allow customers to select any income from nil to 150% GAD.
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At the end of the term, clients will receive their Guaranteed Maturity Value (GMV) and, as with other fixed term annuity offerings, they will be able to use the capital to purchase an alternative retirement income product.
The one-year fixed term annuity will be useful to customers who cannot stay in their current pension scheme; who need to take an income now and want the security of knowing what their remaining fund value will be worth in twelve months’ time; and who may want to take their GMV as taxable cash.
LV= Life and Pensions managing director Richard Rowney said that the company has developed its latest fixed term annuity product in response customer demand in the wake of the Budget announcements.
"This product specifically enables those retiring now to access their tax free cash and income, but defer making a decision as to how they take an income from their pension fund, in the long term, until the new rules come into effect in April 2015," Rowney added.
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