LV= has cut annual bonus rates on two of its with-profits funds as investment returns hit 11.4 per cent, the mutual’s 2014 performance statement shows.
Annual bonus rates on its With Profits Pension Annuity Series 1 to 4 have been cut to 1.4 per cent in 2014, down from 1.9 per cent in 2013. A spokeswoman says the funds represents fewer than 1,000 policies.
However, Pension Income Plus Annuity policyholders will see an increase in annual bonus rates, to 4 per cent in 2014, up from 2.75 per cent in 2013.
Annual bonuses were held on all remaining products, where rates range from 0 per cent to 6.17 per cent.
Final bonuses, which are paid out when the plan reaches maturity, vary between policyholders.
LV= retirement solutions managing director John Perks says: “Against a backdrop of record low interest rates for six years the investment return of 11.4 per cent for our main with-profits fund is good news for investors.
“This is higher than market benchmark, which coupled with the mutual bonus, means our members are receiving better returns than many investors in other traditional savings products.”