Aviva has axed its £100 ongoing platform charge for drawdown as rival providers eye similar price cuts.
From the start of September, Aviva will scrap the additional fee for drawdown in response to reforms announced in the Budget.
Aviva head of platform proposition Phil Ralli says: “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 from event-driven charges.”
Axa Elevate will also seek to alter charges to reflect Budget changes. A spokeswoman says: “In light of the changes announced, we will be enhan-cing our pension proposition and charging structures to reflect the new rules and flexibility to be brought in in April 2015.”
Axa currently charges £80 a year for drawdown in its Elevate pension account. It also has a standalone Sipp costing £195 for capped drawdown and £240 for flexible drawdown.
AJ Bell marketing director Billy Mackay says: “We will continue to look at what the Budget changes may mean. If the outcome means less administrative work, we will look to adjust charges.”