Retirement and protection specialist LV= has move to a tiered charging structure on its personal pension which will favour largers sums invested.
Charges on the LV= Flexible Transition Account will be reduced for customers investing more than £100,000, the company says.
A client investing £300,000 into an LV= pension would pay a total annual wrapper charge of £650 – saving £100 a year, says LV=.
However charges on smaller pensions will rise. Overall charges on pensions worth £50,000 will rise from 0.25% to 0.3%. The changes were introduced from 3 February.
New tiered charging structure
|
Investment amount |
Old charge (0.25% to £1m – 0.1% over) |
New Charges |
|
£50,000 |
£125 |
0.30% £150 |
|
£100,000 |
£250 |
0.25% £250 |
|
£200,000 |
£500 |
0.23% £450 |
|
£300,000 |
£750 |
0.22% £650 |
|
£700,000 |
£1750 |
0.21% £1,450 |
|
£1,000,000* |
£2500 |
0.145% £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). Source: LV=
The new charges apply to contributions invested in LV=’s 220 insured funds, including passive and active funds.
The fund range includes the LV= Smoothed Managed Funds, funds from five passive fund managers including Blackrock, Fidelity and Vanguard, discounted rates on a number of funds including the LGIM Multi Index Funds and a selection of ESG funds.
Clive Bolton, managing director at LV= Savings and Retirement, said: “These changes are another example of how LV= is evolving to support mass-affluent customers in the post Pensions Freedoms market.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.”