Cofunds has moved to reduce pension drawdown charges on its platform following radical reforms announced by Chancellor George Osborne.
In the Budget last month Osborne revealed plans to boost pensions flexibility by allowing anyone aged 55 or over to take their entire pot as cash. This change will come into force in April 2015.
In the interim, the Government has increased the maximum amount a person in capped drawdown can take each year from 120 per cent of GAD to 150 per cent and reduced the flexible drawdown minimum income requirement from £20,000 to £12,000.
In response, Cofunds has removed its pension account annual admin charge. The charge was £150 for assets up to £100,000, tiered down to no charge over £200,000.
The drawdown set-up fee has reduced from £120 to £100, while its annual drawdown charge has dropped from £150 to £120.
Cofunds will now charge £100, down from £150, to review clients income limits under capped drawdown.
In addition, the charge for switching out of capped drawdown and into flexible drawdown has reduced from £150 to £100.
All prices exclude VAT.
Cofunds chief executive David Hobbs says: “We have long believed that pensions should be at the heart of the overall platform proposition as part of a range of fund and wrapper solutions – not an add-on. We feel this is the right move to make, particularly in light of the Chancellor’s latest reforms affecting the retirement market, playing our part in the radical changes that will shape the way we all save for our post-work life.”