LV= annuity customers whose income is RPI-linked will not be affected by the Retail Price Index's (RPI) tumble to -0.4%, which takes the UK into deflation for the first time in 50 years.
The retirement specialist confirmed today its customers will not see a reduction in their retirement income despite the slump. "Some of our annuity products incorporate index-linking, and where the income is specifically linked to RPI, it would normally be expected to reduce in line with deflation. However, we have no current plans to do this," says Mark Trott, head of annuities at LV=. "Whilst we always keep the situation under review we are pleased to confirm that none of our annuitants will experience a decrease in income due to the deflation announcement this morning." The firm sa...
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