LV= has entered the fixed-term annuity market with the launch of its Protected Retirement Plan.
The product has been designed for retirees who want a secure fixed income for a limited time, before making a decision on their lifetime retirement income options, LV= says.
The Protected Retirement Plan (PRP) offers fixed terms of between three and 25 years, falling to 20 years after 6 April 2010.
Retirees will receive a fixed income, subject to GAD limits, with a guaranteed maturity value, which they can then re-invest in a lifetime annuity at a later date. Income options are flexible and the plan uses unsecured pension rules to offer flexibility for investors.
LV= has also launched a trustee investment plan, which combines the PRP's guarantees with the investment options available in a SIPP.
Advisers will be able to design an income and investment solution which better suits their clients, LV= says.
Matt Trott, head of annuities at LV=, says: "The launch of the PRP is the latest addition to the growing ‘third way' annuity market, which had sales of over £1bn in 2008.
"Effective retirement planning needs to be as flexible and fluid as possible to reflect the wider pensions landscape and the demographic of today's retirees.
"Giving people the ability to reassess their retirement income needs after set periods, means that they can benefit from a product that suits their individual requirements at a particular time."
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