LV= has launched a guaranteed annuity product which allows investors to lock-in investment growth.
The Pension Income Plus Annuity allows clients to select an assumed investment return of between 0 and 4 per cent on their policy.
Investors are protected from falls in investment returns by a minimum income guarantee. If investment yields improve the guaranteed minimum income level increases, locking-in a proportion of the investment returns received.
Clients are also given an added layer of protection which ensures the starting level of income will not fall during the first two years of the policy.
Annuity rates are available on both standard and enhanced terms. The provider will charge 1.8 per cent per year for using the product.
LV= head of annuities Matt Trott (pictured) says: “Investment-linked annuities are increasingly popular in the UK market, with advisers and clients alike looking for more flexible and cost effective alternative solutions to standard lifetime annuities.
“Linking an annuity to an investment allows the fund to continue to participate in possible growth, while the guaranteed minimum income provides a secure lifetime income.”