LV=, previously known as Liverpool Victoria, is looking to rival Living Time with it’s new fixed term annuity. Living Time is currently the only provider in this expanding market. Its income plan offers customers a guaranteed retirement income for a minimum three year period and up to age 75 and a guaranteed capital value at the plan’s maturity date, which is determined at outset. The product is written under income drawdown rules.
Money Marketing has revealed the news that LV= plans to launch a similar plan. The firm is also believed to be considering launcing a fixed-term annuity that gives customers a variety of investment options. LV=’s head of pension annuities Matt Trott states that they are looking at the space in the retirement market that exists between a conventional solution and an income drawdown plan, and that they are fairly progressed at looking at the opportunity.
New insurance companies looking at this developing market place are very welcome. One of the key issues that is having an effect on the take-up of Living Time’s product is the fact that there is no competition in the market so having more than one company there will encourage more advisers and retirees to look at this ‘temporary’ option. So, when you start looking at annuity rates for your retirement planning, in an effort to find the correct solution for your needs, perhaps, just perhaps, this could provide a flexible solution that might just be attractive to you.