LV= launch new low cost pension plan

LV= has launched a new personal pension which features a low annual service charge of just 0.25 per cent.

The pension allows investors to choose from a range of 130 funds from 16 leading fund management groups including Threadneedle, Fidelity & M&G.

Pension clients who are invested in the insured range of funds will qualify for the low cost fee but also have the option to transfer to LV’s full SIPP, the Flexible Transitions Account, if they require more flexibility in the future. They will then be charged under the standard fee structure which is 0.55 per cent for the first £75,000 and 0.35 per cent for the next £925,000.

Ray Chinn, LV= Head of Pensions said: "With regulatory scrutiny on clients incurring unnecessary SIPP charges we are pleased to be able to offer this simple, clear, low cost option within our wider SIPP wrapper. We appreciate that some clients want a no-frills, straightforward personal pension, and the wide range of investment funds available means that advisers can easily tailor the plan to suit their client's risk appetite."