LV= removes pension exit fees
Shopping around at retirement is vital to ensure consumers get a good deal, but excessive exit charges can prevent people from doing so.
LV= has announced that it is removing all pension wrapper exit charges from today, allowing customers to switch to another product or provider without incurring a charge.
LV= first pledged to remove exit fees by the end of 2016 in July this year.
The provider confirmed its decision to stop selling enhanced annuities last month, instead planning to increase its focus on secure drawdown options as well as its wider Retirement Solutions business.
LV= says the move reflects the changes in retirees’ buying habits since the Freedom and Choice reforms as well as the current interest rate and regulatory environment.
John Perks, Managing Director of Retirement Solutions at LV=, said: “Shopping around at retirement is vital to ensure consumers get a good deal, but excessive exit charges can prevent people from doing so. In July, we committed to removing all pension wrapper exit fees by the end of 2016 and I’m delighted to announce this change has come into effect today.
"As a modern mutual, we are committed to ensuring our members have access to good value, transparent products that enable them to get the best outcome for their needs in retirement.”