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LV= will launch flexible drawdown product in April

LV= has confirmed it will be ready to offer capped and flexible drawdown in April.

In December, the Treasury confirmed details of proposals that will remove the requirement to buy an annuity at age 75.

The new capped and flexible drawdown regime will go ahead from April 6 despite strong opposition from pension firms, which argued they did not have enough time to develop products for the new regime.

Scottish Widows, Standard Life, Friends Provident, Royal London, Prudential and Aegon have confirmed they will not have a flexible drawdown product available from April this year.

Legal & General and Aviva are unable to say if they will have products ready to meet the Treasury start date.

Standard Life and Friends Provident are the only other providers to confirm they will be able to offer flexible drawdown some time this year.

LV= life & pensions managing director Richard Rowney says: “Scrapping the requirement to annuitise by age 75 has removed a barrier that is cited by many as a disincentive for people to save into a pension and it will also give greater flexibility over how people can take income in retirement. At LV= we will be ready to offer capped drawdown on April 6 this year. We are pleased to announce that we will also be ready to offer flexible drawdown in April and we will confirm the detail of our proposition over the next couple of weeks.”

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