With nearly two thirds of UK adults fearing they’ll run out of money in retirement, advisers are under pressure to offer stable, flexible solutions amid ongoing market volatility and uncertainty.
Investment, protection and retirement specialist LV= has revealed that almost two thirds (63%) of UK adults are worried about depleting their funds in retirement, as ongoing market volatility challenges client confidence and financial planning.
In addition, new data from LV’s latest Wealth and Wellbeing research highlighted more than one in ten (11%) consumers are worried about the impact of stock market volatility, up from 8% in December 2024. These findings come as advisers face heightened demand for strategies that protect client outcomes amid the ongoing economic uncertainty triggered by the US tariffs.
As clients approach retirement, managing market risk becomes increasingly important. In this environment, lower-volatility investments such as Smoothed Managed Funds and guaranteed income streams such as a Fixed Term Annuity, can help offer valuable stability.
While not always top of mind when compared to traditional Lifetime Annuities, Fixed Term Annuities deliver a guaranteed income and offer a flexible, fully bespoke approach to retirement planning.
Gwen Haggo, Savings and Retirement Savings Director, said:
“With the global markets experiencing such turbulent times, having a steady income, with the flexibility of different terms, can offer invaluable peace of mind.
“We recognise sequencing risk and the negative impact withdrawing income from investments during market downturns can have on retirement strategies.
“Fixed Term Annuities offer a guaranteed income for a set period, helping to protect clients from short-term market shocks. LV’s Fixed Term Annuity forms part of a broader retirement proposition, ‘Guaranteed Income Drawdown (GID)’ for new customers, allowing them to blend secure income with flexible investment options through Smoothed Managed Funds. GID allows the client to make decisions suitable for their life stage, and at the same time invest a portion of their pension pot in funds that cushion the markets during volatile times.
“At LV= we’re aware of the increasing pressure that advisers are facing. Highlighting these lower volatility solutions can help advisers to have those difficult conversations and provide confidence for clients when they need it most.”
LV’s Fixed Term Annuity offering provides comprehensive retirement solutions, including Guaranteed Income Drawdown (GID). This innovative approach combines the security of annuity income within a Fixed Term Annuity, with the potential for investment growth through LV’s renowned Smoothed Managed Funds and provides valuable member benefits, such as eligibility for a potential mutual bonus award.
Within the GID solution, the investment is protected from market volatility, offering a stable solution without the need to step away from the market all together. LV’s Smoothed Managed Funds undergo a unique smoothing process that takes the average of a fund’s daily price over the past 26 weeks, sheltering clients’ money from some of the daily uncertainty of investing.
To find out more about LV’s Fixed Term Annuity, visit https://www.lvadviser.com/fixed-term-annuities/fixed-term-annuity.
