View more on these topics

Aviva latest provider to cap exit fees

Aviva-signage-building-2013-700.jpg

Aviva, the UK’s biggest pension provider, is to introduce a 5 per cent cap on exit fees for all individual and workplace pension customers, Money Marketing can reveal.

The move follows Standard Life, who have already introduced a 5 per cent cap, and Prudential, who plan to bring a cap in at “below 5 per cent”.

Yesterday, Scottish Widows said it will remove exit fees entirely from all workplace schemes and will review individual policies in the future.

Aviva would not detail the number of customers who will benefit from the change or how many customers have policies with exit fees.

George Osborne handed the FCA a new duty to tackle “excessive” exit fees in January.

A spokeswoman says: “The vast majority of Aviva’s pensions do not carry early termination charges. Where an early termination charge does apply, we will be introducing a 5 per cent cap in the near future on the small proportion of  pension policies that  carry charges at this level.

“Aviva’s cap will support those customers aged 55 years and over who wish to access the pension freedoms. Aviva has been working to implement a cap across its entire pensions book, including workplace and individual pensions, for some months.

“The cap will also be extended to include those customers accessing their pension funds under ill health requirements or those with protected retirement ages.

“Early termination charges were originally designed to fairly recoup expenses incurred when the policy was set-up. However, we feel that a cap is now appropriate to ensure that customers do not face barriers in accessing the pension freedoms, which came into effect last year.”

Recommended

Exit sign
4

Closed-book giant Phoenix: ‘No evidence’ exit fees blocking pension freedoms

Closed-book provider Phoenix Life says it does not consider exit charges a problem and finds “no evidence” penalties are stopping customers using the pension freedoms. The stance comes a day after Scottish Widows announced plans to scrap all exit fees on workplace pensions and Money Marketing revealed Standard Life and Prudential have capped penalties. Phoenix […]

Standard-Life-Building-700x450.jpg
6

Standard Life and Pru to cap exit fees

Standard Life has introduced a 5 per cent cap on exit penalties for thousands of individual and workplace pension customers, Money Marketing can reveal. The insurer made the change in January ahead of Chancellor George Osborne announcing the FCA’s new duty to impose a cap on “excessive” exit fees. In addition, Money Marketing can also […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment