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Liv Vic re-launches with profits pension annuity

Liverpool Victoria has re-launched its with profits pension annuity and has reduced the smoothing period for new annuity business from five to two years for top-up bonuses.

The move is designed to ensure policyholders’ annuity income more quickly reflects the actual performance of the underlying investments in the with profits fund.

As part of the re-launch, Liverpool Victoria has joined the comparative annuities’ service on The Exchange’s Exweb service which offers realtime and indicative rates, enabling financial advisers to compare and contrast annuity providers. The friendly society has also introduced a new range of literature to help financial advisers explain the WPPA to clients.

In the 2006 bonus declaration, Liverpool Victoria announced a regular bonus of 3.5 per cent. This will be reflected in the income of existing WPPA policyholders who have their policy anniversary between 1st February 2006 and 31st January 2007.

Year of Declaration
2000
2001
2002
2003
2004
2005
2006

Regular Bonus (per cent)

N/A*
5
4.75
3.5
3.5
3.5
3.5
*As this was the year that WPPA was launched there was no bonus declaration.


Top-up Bonus
The recent top-up declaration from Liverpool Victoria applies to WPPAs with a policy anniversary between 5th December 2006 and 31st January 2007. Liverpool Victoria will make another declaration on 1st February 2007. These top-up bonuses do not form a permanent addition to the annuity and are paid for a limited period, usually 12 months, and because they are not permanent can be withdrawn or varied.

Year Annuity started
2000
2001
2002
2003
2004
2005

Top-up Bonus (per cent)
11
2.5
0
9.5
17
10


Liverpool director of intermediary business Stuart Tragheim says: “We have seen an increase in demand for this product from a number of IFAs and believe the new product structure will assist them to provide further financial planning opportunities for their customers. This is a key move for the society and fits well in the post A-Day market, as well as underlining our commitment to the IFA market.”


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