LV= (Liverpool Victoria) Old Style Tax Free Savings plan - bonus reducing?

makethemostofit

Hi 

Not posted much here, so hope this is acceptable. My old style £270 a year Tax Free Savings plan was coming up for 20 years just as the demutualisation debate was ongoing, so I thought I'd renew it for another ten years. However, since then, my bonus has been dwindling away and after many years doing well, the total amount has gone in reverse, wiping out the annual installments. I can close the account, but just can't get enough information to let me make an informed decision.

From speaking to LV=, it seems I'm not the only one affected by this, and wondered if anyone else is in the same situation here?

dunstonh

However, since then, my bonus has been dwindling away and after many years doing well, the total amount has gone in reverse, wiping out the annual installments. 

It would do.  Post credit crunch, bonds boomed on the back of low interest rates and quantitative easing.   However, from the end of 2021, QE started to be wound down and interest rates rose.    So, the bubble that was created started to unwind and carried on doing so through to near the end of 2023.

From speaking to LV=, it seems I'm not the only one affected by this, and wondered if anyone else is in the same situation here?

The type of plan you have went obsolete in the mid 90s.  So, you won't find many here with it.    However, any investor who had bonds in their portfolio (which is most) would have taken a hit on the bonds side.  And the more bonds you have, the greater the hit.  LVs WP fund was heavier in bonds.

makethemostofit

Thank you for your response - it's not the actual investment itself which seems to creep up, it's the drop in bonus that is very concerning, but at least your response gives me a little insight. What doesn't make sense is that LV keep trumpeting how much they keep saying they're giving back to members!