LV= scraps £30k minimum drawdown limit

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LV= has removed its £30,000 minimum pot size for customers entering flexi-access drawdown.

The mutual says it originally introduced the restriction based on how it expected people with small pots to access their savings.

But now it says it wants to “ensure all of our customers are able to take advantage of the pension freedoms, however they wish to use them”.

LV= retirement solutions managing director John Perks says: “We want pension savers to be able to make the most of their funds and giving all customers access to all of the flexible retirement income products we offer does just that.

“Typically customers with small pension pots request to take their money as a lump sum, but having the choice of flexi-access drawdown means they will now have the option to take their money in a tax-efficient way.”

Last week, Friends Life was forced to admit it could not offer some customers access to the full range of pension flexibilities, including flexi-access drawdown and UFPLS.

But yesterday the Association of British Insurers defended providers, saying “in any market you would not expect all providers to offer all options”.

LV= recently launched a full online advice service for customers without advisers or with savings deemed too small to viable for traditional advice.