LV= Reports That up to 1.2 million Over-50s may use Equity in Home to Supplement Pensions

CROYDON, England, October 11, 2010 - LV= has revealed that 'Home is Pension' is a common mantra among the
over-50s workforce in Britain as shown in a recent report published by the
retirement specialist. Although 54% of the over-50s believe the value of
their home has fallen over the last three years, an estimated 1.2 million
'HIPpies' ('Home is Pension') may use the equity in their home to help
supplement their retirement income.

Only 19% of all over-50s still in work feel that they are financially on
track to retire as planned, while the number of working over-50s that believe
they may have to delay retirement for financial reasons has increased hugely,
to 41% from just 28% this time last year. Homeowners over 50 estimate they
have lost GBP60 billion in property value due to recent volatility in the
housing market.

However, this has not put many off using the equity in their homes to
help fund retirement, with nearly a quarter of working over-50s considering
using some, or all of the equity in their home to fund their retirement. The
'Home is Pension' mantra is so valuable to over-50s (
www.lv.com/lifeinsurance/50plus/50_plus_tips_and_advice/why-is-there-specific-life-insurance-for-over-50s - lv=), that 54% would suggest their
children include investment in property as part of their retirement planning.

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When working over-50s were questioned about the impact an interest rate
rise would have, LV='s research found that 40% would have to reduce their
pension contributions just to meet the higher cost of paying debts. More than
four in ten (44%) of all working over-50s and 34% of those aged 60-69 in
work, have an outstanding mortgage debt on their home.

Vanessa Owen, LV= Head of Equity Release (
www.lv.com/retirement_plans/equity_release/case_study), said: "It
seems to be increasingly commonplace for those approaching retirement to
consider using the equity in their property as part of their overall
retirement plan. Continuing doom and gloom over volatility in the housing
market and seeing some properties fall in value, hasn't deterred the UK's
"HIPpies" and many are still positive that the equity in their home is their
best chance of having a more comfortable retirement."

Of those planning to use the equity in their home, nearly a quarter (22%)
believe this is now their best option because their pension savings won't
give them the income they hoped it would, and 13% say it's all they have to
rely on after the state pension. Two-thirds (64%) of these said they had
always planned to use their property for their retirement: 52% by downsizing
their home to release equity and 12% to borrow against their home through an
equity release product.

Many over-50s are experiencing a 'double whammy', having seen large
amounts wiped off the value of their pensions and investments, whilst also
being forced to reduce the amount they are setting aside for retirement due
to the pressures of living costs during the recession.

Notes to editors

All research was conducted for LV= by Opinium Research in September 2010
amongst more than 1,172 British adults aged over 50 and in employment.

About LV=

LV= is a registered trademark of Liverpool Victoria Friendly Society
Limited (LVFS) and a trading style of the Liverpool Victoria group of
companies.

LV= offer a range of insurance (www.lv.com/insurance/) products
including home insurance (www.lv.com/insurance/home_insurance/), car
insurance, life insurance , pet insurance and over 50 life insurance
(www.lv.com/lifeinsurance/50plus/index).

LV= employs around 4,000 people, serves over 3.8m customers and members,
and manages around GBP9.5bn on their behalf. We are also the UK's largest
friendly society and a leading mutual financial services provider.

LVFS is authorised and regulated by the Financial Services Authority,
register number 110035. LVFS is a member of the ABI, the AFM and ILAG.
Registered address: County Gates, Bournemouth BH1 2NF.

    PR Contact:
    Linda Winder
    LV=
    69 Park Lane
    Croydon
    CR9 1BG
    +44(0)20-7634-4418
    www.LV.com

PR Contact: Linda Winder, LV=, 69 Park Lane, Croydon, CR9 1BG, +44(0)20-7634-4418