With Profits:


PIPA Declared Investment Returns

We aim to add declared investment returns (DIR) to provide steady growth.

These will vary from time to time (and may be negative and reduce your client's income). We'll add any DIR to your client's basic annuity after allowing for the chosen assumed investment return (AIR). If the DIR added is higher than your client's chosen AIR, then their income will increase. Similarly, if the DIR added is lower than your client's chosen AIR, then their income will decrease.

Your client's income will be guaranteed to not fall below the minimum income shown in their policy schedule.

Declared investment returns reflect:

  • Investment performance of our main With-Profits Fund
  • The annual charge applied
  • Our current approach to smoothing
  • Our own and/or industry mortality experience (we look at trends of when people die) and how we think they might change.

We currently declare investment returns four times a year - they will apply from 1 February, 1 May, 1 August and 1 November. The DIR applied will relate to the declaration on or immediately preceding the policy anniversary and will depend on the entry date of the Pension Income Plus Annuity.

Recent Declared Investment Returns

Our next investment returns will be declared in July 2023 for policies with anniversaries during the quarter beginning 1 August. 

Our most recent declared investment returns are shown below: 

Entry-Date in the quarter beginningDIR
01 May 20121.50%
01 May 20131.25%
01 May 20141.00%
01 May 20150.75%
01 May 20160.50%
01 February 2012-1.00%
01 February 2013-1.25%
01 February 2014-1.50%
01 February 2015-1.75%
01 February 2016-2.25%
01 November 2011-1.75%
01 November 2012-1.75%
01 November 2013-1.75%
01 November 2014-1.75%
01 November 2015-1.75%
01 November 2016-1.75%
01 August 20121.75%
01 August 20131.75%
01 August 20141.75%
01 August 20151.75%
01 August 20161.50%

In addition to declared investment returns, Pension Income Plus Annuity (PIPA) policies benefit from mutual bonus and exit bonus. Mutual bonus uplifts policyholder income annually by the most recently declared rate. The most recent declaration was 1%.

Exit bonus has been applied to policyholder income as a one-off uplift. The current rate of exit bonus can go up or down resulting in increases or decreases in policyholder income.

In the unlikely event that our financial strength was to reduce to an unacceptable level, both mutual bonus and exit bonus can be reduced or removed entirely. In these circumstances, we currently expect to reduce the exit bonus first and then we’d look at potentially reducing the mutual bonus.

We add mutual bonus and exit bonus as an addition to the income your client will receive, before allowing for any guarantees. These bonuses do not increase your client's guaranteed minimum income.

Further information about mutual bonus and exit bonus can be found at LV.com/mutualbonus and LV.com/LVdifference.

Contact Phone

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0800 085 0250

9am-5pm Mon-Fri

TextDirect: first dial 18001. We will record or monitor calls for training and auditing.