8th September 2015
Retirement income specialist LV= is launching a range of tools designed to make defined benefit pension schemes members aware of their income options at retirement in light of the new freedoms. The firm says that the tools under the heading, Pensions Compass, will also help pension trustees to effectively meet their duty of care so that members achieve the best outcome.
LV= says it is creating the tools in response to feedback from trustees who expressed concerned about how best to navigate the new pension landscape for members given they cannot offer advice.
LV= Pension Compass will be aimed at pension savers in defined benefit schemes and will allow members to compare and contrast the new income options to the guaranteed benefits offered by their current final salary arrangements. It will also look at the pros and cons of the income solutions now available to them; address how much income they need to achieve to fund their retirement; look at longevity risk i.e. how long they may live and therefore how long they are likely to need to secure an income for; and outlines the solutions that best suit their individual needs.
Alongside the tools, LV= is creating a microsite which includes information around the key considerations for pension scheme members and trustees, such as whether it is possible to defer taking an income for a pension and the value of any State Pension entitlements.
Steve Lewis, Head of Distribution at LV= Retirement Solutions said: “The pension changes that came into force in April gave retirees greater freedom and choice as to how they take an income from their retirement savings. Much has been made about how this impacts on private pension savers and how best to support them in the new world, however the changes affect those in workplace schemes and pension trustees as well. LV= Pension Compass will ensure that pension scheme members are able to take advantage of the wider range of pension income solutions now available to them and to support pension trustees in discussions they have with members about their options.”