Protected Retirement Plan

The LV= Protected Retirement Plan offers both flexibility alongside a guaranteed level of growth for a fixed term with a chosen income and maturity value at the end. It also has a conversion feature to break out at any time.

Our Protected Retirement Plan offers many features, including:

• Available as a standalone product, or as an investment option in a tax-efficient SIPP wrapper.

• Minimum investment of £10,000 – after any pension cash lump sum.

• Guaranteed income over a fixed term – of up to 25 years (minimum term applies).

• Flexi-access drawdown – clients can choose their income at the start of the plan, without any restrictions on the amount.

• Conversion feature means your client can transfer to another retirement product, reinvest in another plan, or take as taxable cash – at any time, for any reason (values could be significantly lower than GMV).

Product profile

Our Protected Retirement Plan product profile details the risks, suitability, charges and further details on the benefits to your client.

Important information

Our flexible options give your clients control over their retirement income. Here are some important things you should know about our Protected Retirement Plan:

• If your client opts for level income, it won’t keep up with inflation and may buy less in future.
• At the maturity date, we guarantee the amount payable. We can’t guarantee the income it will provide – this depends on the economic and investment conditions at the time.
• If the anytime conversion feature is used, the value of the plan may be less than the maturity value or the original investment amount. This is more likely when used near the start of the plan term.

• Payments will stop if your client dies before the maturity date – unless death benefits are chosen.
• The income and maturity value are fixed and guaranteed if held for the plan term. Your client may gain higher returns holding investments that don’t offer these guarantees.

Income options

Our Protected Retirement Plan can be tailored to meet your client’s needs. They’ll benefit from guaranteed income and control over their pension fund – accessing their money whenever it’s needed.

We can pay your client’s income every month, every 3 months, every 6 months, or every year.

• Level income – your client can choose to keep their income the same throughout the term. This will provide a higher starting income, but it won’t keep up with inflation – so it’s buying power could reduce in the future.
• Default income – using current rates, we’ll calculate an income and Guaranteed Maturity Value. The Guaranteed Maturity Value will aim to provide a similar income if used to purchase a lifetime annuity at maturity.

• Increasing income – your client can choose to increase their income every year, by a fixed percentage (up to 8.5%). The first income review date is usually the anniversary we first started paying your client’s income, or when their maximum income level was last reviewed.
• No income – your client can choose not to take any income and just have a Guaranteed Maturity Value, payable at the maturity date. If you client dies before the end of the plan and they’ve chosen a death benefit, we’ll pay this instead.

Customer death benefits

Planning for the worst can be daunting, but securing your client’s funds if they pass away can offer vital reassurance.

Your client can choose one or more of our optional death benefits, at the start of their plan:

Beneficiary’s income – your client can choose a beneficiary to inherit their plan if they die. The beneficiary will receive an income and Guaranteed Maturity Value equal to the chosen percentage of the plan income. It can be combined with a guaranteed period or value protection death benefit.

• Guaranteed period – your client can protect their income for a set period – if they pass away during this time, the remaining income will be paid as a lump sum. If the plan includes a beneficiary’s income, it will be paid to that beneficiary as income. This option cannot be combined with value protection.
• Value protection – your client can protect up to 100% of their original investment if they pass away during the plan term. The lump sum is the chosen proportion of the initial investment, minus any income already paid to the member and beneficiary (for plans including a beneficiary’s income).

Trustee death benefits

If your client is worried about dying before the end of their Trustee Investment Plan, they can choose an optional death benefit at the start of their plan.

Trustees can choose one of the following options:

• Value protection – your client can protect up to 100% of their original investment if they pass away within the plan term. The lump sum is the initial amount used to purchase the plan, minus any income already paid.
• Plan protection – the trustee can choose to protect all of the plan’s income and Guaranteed Maturity Value (GMV). The income and GMV will continue to be paid for the rest of the plan term. If the scheme trustees or chosen beneficiary(s) don’t continue with the plan, they can utilise the conversion option and end the plan immediately - swapping the remaining income and/or GMV for a lump-sum.