View more on these topics

Aviva scraps drawdown platform charge following Budget

Aviva is scrapping the £100 ongoing charge on income drawdown through its platform following changes announced in this year’s Budget.

The price change will apply to both new and existing clients from the start of September. The platform will allow advisers to produce quotes based on the new pricing from the start of August.

Aviva head of platform proposition Phil Ralli says: “Around the rationale, the changes made in the Budget mean we are absolutely convinced drawdown is going to be playing a much bigger role in retirement planning. This is allied to the fact that we are seeing a general trend away form event driven charges.

“We have positioned ourselves as platform for the mid-market and this is very much in line with that thinking.”

He adds that administrative requirements related to provision of drawdown on the platform should decrease following the Budget reforms.

He says: “When the changes come into place in April, assuming the flexibility works in the way we anticipate, there will be work for platforms up front. But after that is done it will be easier and cheaper to administer drawdown business.” 

The platform has a tiered charging structure starting at 0.35 per cent for its pension wrapper.

In April, Cofunds moved to cut drawdown charges while Ascentric cut its fees earlier this month.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment