"We have done a huge amount of work refreshing our pension range to make it more appealing to advisers and their clients."
LV= is introducing a new charging structure for pensions taken out from July 2020 following a market review and research with financial advisers.
Policyholders will pay a wrapper fee on the first £700,000 of their pension investments. No charges will apply to excess sums over this level and a minimum wrapper charge of £195 is being introduced.
The LV= Flexible Transition Account will be built of three structural components, allowing advisers to mix and match investments to meet their clients’ needs.
LV= Core offers a range of active and passive insured funds including the LV= risk-rated Smoothed Managed Funds. Charges are 0.2% for amounts up to £700,000 and 0% for amounts about £700,000.
LV= Selected includes eight DFMs and approved TIPs for bespoke investment choices. Charges are 0.25% for amounts up to £700,000 and no charge above this figure.
LV= Extended offers additional DFMs and commercial property with charges of 0.3% up to £700,000 and no charges on funds above £700,000.
Clive Bolton, managing director at LV= Savings and Retirement, said: “These changes are another example of how LV= is evolving to support our customers with value for money charges that enable them to mix and match their investments.
“We have done a huge amount of work refreshing our pension range to make it more appealing to advisers and their clients. We have extended our online valuation service, removed the drawdown fee for new customers and these latest changes make LV= more competitive, particularly for those with pension funds between £100,000 and £500,000.
“Throughout the rest of the year we’ll be introducing a series of improvements as we continue to develop our range of pensions, investments and retirement products for this customer segment.”