The company believes pension savers worried about Coronavirus and investment market turmoil are seeking a “safe haven” for pension savings.

LV= says there has been an increase in enquiries from both advisers and customers.

Overall application volumes have doubled over the last month compared to the monthly average seen over the previous three months, says LV=.

The LV= fixed term annuity currently has a minimum term of three years and is aimed at clients at or near retirement. 

The company says fixed term annuities are likely to appeal to cautious retirees looking to defer big decisions about their pension pots.

Clive Bolton, managing director of savings and retirement at LV=, said: “The huge stock markets falls of the past weeks and the ongoing volatility that looks to be here for some time to come have worried many savers who are either approaching retirement, or drawing an income from their pension fund.

“Although drawdown is hugely popular, savers in drawdown run the risk of running out of money in retirement. An alternative, which has become increasingly popular over the past few weeks, is a fixed term annuity.”