LV='s low cost pension offers a range of 130 funds, from 16 leading fund management groups, including Threadneedle (offering risk profiled multi manager funds), Fidelity, M&G, Schroders, and State Street Global Advisors (offering a low cost passive investment option from 0.1% TER).
Clients who remain invested in the insured range of funds qualify for the low cost fee, but equally are able to transfer to LV='s full SIPP, the Flexible Transitions Account, if they need greater flexibility in the future, reverting to the standard fee structure.
Ray Chinn, LV= Head of Pensions said:
"With regulatory scrutiny on clients incurring unnecessary SIPP charges we are pleased to be able to offer this simple, clear, low cost option within our wider SIPP wrapper. We appreciate that some clients want a no-frills, straightforward personal pension, and the wide range of investment funds available means that advisers can easily tailor the plan to suit their client's risk appetite.
"We pride ourselves in offering pensions that are transparent, setting out a clear charging structure so there are no surprises further down the line. And we are providing advisers with products now that are already RDR friendly."
LV='s new low cost pension plan is designed to give people clarity and certainty. By setting out the annual service charge from the outset, clients are clear about what they will be charged throughout the plan's lifetime.
Ray Chinn added:
"We piloted this product during 2011 and it proved extremely popular with advisers, with sales exceeding our expectations. We have now been able to make improvements to the pension plan by adding more funds and reducing the cost even further."
