LV=, a retirement income specialist, has rolled out its latest one year fixed term annuity, designed for people approaching retirement.
The company said that the new fixed term annuity is suitable for the buyer who wants to take advantage of the flexibility offered by the new pension rules, but requires an income between now and April 2015.
The customers, who will buy a one year fixed term annuity, will be able to access their tax-free cash and, take an income over the next year.
Following completion of the policy term, clients will receive their guaranteed maturity value (GMV) as well as other fixed term annuity products.
Furthermore, customers who will buy LV=’s fixed term annuity, will also be able to select any income from nil to 150% GAD.
LV= life and pensions managing director Richard Rowney said, "We have developed our latest fixed term annuity product in response customer demand in the wake of the Budget announcements.
"This product specifically enables those retiring now to access their tax free cash and income, but defer making a decision as to how they take an income from their pension fund, in the long term, until the new rules come into effect in April 2015."