3rd April 2014

LV=: Special Edition 1 Year Fixed Term Annuity (PRP)

Since the Budget 2014 revolutionised the retirement landscape, those facing retirement have been searching for a way to access their tax free cash as well as receive an income - without limiting their retirement income options for the future. 
That's why we have committed to introducing a one year option for our Protected Retirement Plan (PRP) fixed term annuity, giving those nearing retirement the opportunity to delay choosing their preferred type of retirement income until the new pension rules take effect in April 2015.

The one year PRP means that clients can still access their tax-free cash and take an income (if they need to) and at the end of the term, they’ll be able to use their Guaranteed Maturity Value (GMV) in a more flexible way. This product is not designed to provide investment returns, it will provide flexibility and security.

Who is the plan suitable for?

This plan is suitable if you have clients who want to wait for the new pension rules in April 2015 and:

• they can't stay in their current pension scheme
• they need to take an income from their pension fund now
• they want the security of knowing what their remaining fund value will be in a year's time
• they may want to take their GMV as taxable cash (subject to planned legislation)

Who is the plan not suitable for?

If your clients:

• might need to change their retirement planning in the next year (for example, if they’re in 
  ill health) – the conversion option isn’t available for this one year PRP option
• may need to change the level of income from their plan in the next year
• are looking for an investment return
• are already in a Drawdown product
• need a dependant’s income or death benefit guarantee period
• don’t want to take their tax-free cash yet 
  (Please note: they won’t be able to take part of the GMV as a tax-free lump sum).

For quotes please call 0800 169 1111

To speak to a Retirement Income Specialist please call 08000 850250

Key Features Document for our Special Edition 1 Year Fixed Term Annuity

Pensions, Retirement