21st March 2014
LV= will allow customers who have transferred funds to buy an annuity but who have now changed their mind, to reinvest their cash back into their ceding scheme while they consider their options. The firm requires an individual to be in receipt of financial advice about the decision. It will also increase its 30 day cancellation period to 60 days.
LV= life and pensions managing director Richard Rowney says: “For those annuity clients still within their cancellation period, LV= guarantees that it will return funds to ceding schemes if they have sought advice, and it is believed to be in the client’s best interest. LV= has extended its 30 day cancellation period to 60 days in response to the Budget. Since the Chancellor’s announcement, we have had advisers contacting us in order to consider their clients’ options and we believe our extending cancellation period will give them time to reflect where necessary.”
LV= has also extended its annuity guarantee period from 30 days to 45 in light of changes in the Budget. The firm says it believes annuities will still have an important place in the new retirement landscape.
John Perks, Managing Director, LV= Retirement Solutions says: “We believe that annuities will continue to have a place within the new retirement income landscape as many clients want the certainty and guaranteed income that these products provide. However we anticipate that other options will now be given more consideration. LV= is well placed here given our wide range of ‘at retirement solutions’.
“With regard to people currently considering annuitisation, in light of the changes the Chancellor has announced, we want to ensure that advisers and their clients have time to consider the retirement income options available and make the right decision. Therefore, for cases that we receive within the next fortnight and those already in the pipeline, we are extending our annuity quote guaranteed period for cases from 30 days to 45. For those customers who are within their 30 day cancellation period, and for new customers buying a product with us over the next month, we are extending their cancellation period to 60 days so that they also have time to reflect where necessary.”