Aviva has come under attack for pushing back the MVR-free day on a with-profits policy by five years as a result of the changes to the minimum retirement age.
Lumley Baxter Asset Management partner Richard Baxter has a with-profits investment within his pension and Aviva has written to tell him the MVR-free day will be pushed back to 55 due to the rise in retirement age from 50 to 55 from April 10.
Baxter says: “This is grossly unfair in that I am potentially being locked into a fund I do not want to be in for five years more than I want to be in it. This is the complete antithesis of treating customers fairly and I will be taking this to the ombudsman.”
An Aviva spokesman says: “Aviva decided that for policies where the specified retirement date was between 50 and 55, the fairest course of action would be to raise the minimum age at which the MVR guarantee can be applied to 55.”
Hargreaves Lansdown pensions analyst Laith Khalaf says: “Few people will be affected but those who are will justifiably have a bee in their bonnet.”