Retirement specialist LV= has today announced increases of up to 20% on its Pension Income Plus Annuity (PIPA) rates.
PIPA is an investment linked lifetime annuity which gives clients the opportunity to have a competitive level of initial income, the potential for future income growth and the protection of a minimum income guarantee.
Clients can select an assumed investment return (AIR) of between 0-4% at the outset which determines their starting income and, along with investment returns, how their income will vary each year. Clients are protected from falls in investment returns by the minimum income guarantee. This is set at the 0% AIR income level and will never decrease.
If PIPA clients set an AIR of only 2.5%1, they would receive the same level of income as they could with a conventional level lifetime annuity, but with the potential to increase their annual income in the future.
Investment returns are applied to the annuity each year and a client's guaranteed minimum income increases each time the investment return rises above its previous highest level.
PIPA annuity rates are available on standard and enhanced terms, with around 1,400 medical conditions qualifying for enhanced rates.
Michelle Cutler, LV= Head of Investment Annuities said: "PIPA offers clients a secure and competitive lifetime income, as well as providing potential for future growth. Our product offers a much simpler structure than traditional with-profits annuities and the annual application of investment returns gives clients greater clarity about their payouts. With newly revised rates, PIPA is an even stronger proposition for advisers whose clients want an alternative to standard lifetime annuities."
Advisers who have received quotes for clients but have not completed an application will automatically be offered a new quote.
For information about LV='s range of retirement products go to www.LV.com/adviser
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