Alliance Trust Savings is scrapping all set-up fees on drawdown from 6 April, the platform provider has confirmed.
It previously charged set-up fees of up to £250.
The platform is also introducing an annual flat fee of £276 for all types of drawdown from January 2016.
There will be no fee for being in drawdown between 6 April, when the Government’s pension freedoms come into effect, and January 2016.
ATS managing director Patrick Mill says: “A flat fee can offer even a client who has saved modestly for their retirement a significant saving against the percentage-based option.”
ATS has also confirmed it plans to support the uncrystallised funds pension lump sums option and is hoping to have this ready for April.
It says ad-hoc payments of UFPLS will incur a small charge. Clients which only take UFPLS on an ad-hoc basis will not incur any drawdown-related annual fee.