LV= introduces tiered charging structure on personal pension

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LV= introduces tiered charging structure on personal pension

03/02/2020
RETIREMENT
LV=, the retirement and protection specialist, is introducing a tiered charging structure on its personal pension.

Charges on the LV= Flexible Transition Account will be reduced for customers investing more than £100,000, and a client investing £300,000 into an LV= pension would pay a total annual wrapper charge of £650 – saving £100 a year. Overall charges on pensions worth £50,000 will rise from 0.25% to 0.3%. The changes will be introduced on 3rd February 2020.

New tiered charging structure

Investment amountOld Charge (0.25% to £1m- 0.1% over)New Charges
£50,000£1250.30% £150
£100,000£2500.25% £250
£200,000£5000.23% £450
£300,000£7500.22% £650
£700,000£1,7500.21% £1,450
£1,000,000*£2,5000.145% £1,450
*No charges are levied on investments amounts over £700,000. In this example using a £1m pension fund, 0.215% (£1,450) charge is applied to first £700,000 and none to remaining £300,000. The charge on the whole £1m pension is equivalent to 0.145% (£1,450).
The new charges apply on all contributions invested in LV=’s range of 220 insured funds, including passive and active funds. With investment charges starting from just 0.05% the fund range includes: 

 

  • LV= Smoothed Managed Funds with two unique levels of investment protection and reduced wrapper charge of just 0.15% when 100% invested in these funds. (LV= is waiving the first year pension wrapper charge of 0.15% for clients who invest 100% in our Smooth Managed Funds by 5 April 2020)
  • Funds from five of the leading passive fund managers including Blackrock, Fidelity and Vanguard
  • Discounted rates on many funds, including the LGIM Multi Index Funds for just 0.24%
  • A selection of Environment Social Governance (ESG) funds – active and passive and with a range of different risk ratings
These changes are another example of how LV= is evolving to support mass-affluent customers in the post Pensions Freedoms market, and throughout 2020 we’ll be introducing a series of improvements as we continue to develop our range of pensions, investments and retirement products. These latest changes make the LV= more competitive, particularly for those with pension funds above £100,000.
Clive Bolton,managing director at LV= Savings and Retirement, said: