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LV= doubles annuity cancellation period in response to Budget reforms

LV= has doubled its annuity cancellation period to 60 days in response to radical pension reforms announced by Chancellor George Osborne in the Budget.

The changes revealed by Osborne yesterday will allow people to take their entire pension pot as cash from age 55. The new rules will apply from April next year.

Under interim reforms, the Government will increase the trivial commutation limit from £18,000 to £30,000 from 27 March.

The triviality limit for private pension pots will also rise from £2,000 to £10,000, with individuals allowed to take three separate pots as cash instead of two.

In addition, the flexible drawdown minimum income requirement will be cut from £20,000 to £12,000, while the maximum income a person in income drawdown can take will increase from 120 per cent of GAD to 150 per cent.

LV= has increased its annuity cancellation period from 30 days to 60 days to give clients more time to consider their options.

LV= life and pensions managing director Richard Rowney says: “For those annuity clients still within their cancellation period, LV= guarantees that it will return funds to ceding schemes if they have sought advice, and it is believed to be in the client’s best interest.

“LV= has extended its 30 day cancellation period to 60 days in response to the Budget.

“Since the Chancellor’s announcement, we have had advisers contacting us in order to consider their clients’ options and we believe our extending cancellation period will give them time to reflect where necessary.”

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