5th March 2015
With the new pension freedoms just a month away Standard Life has announced it is removing the charges it currently applies to its flexible drawdown pensions.
From April the one-off set up charge of £208 and early depletion charge of £312 will be axed.
Unlike annuities where savers swap their pension for a fixed income for the rest of their life, income drawdown plans allow retirees to stay invested and draw and income from their pot – however the typically comes with a number of charges.
David Tiller, Standard Life head of adviser platform propositions, said: “Standard Life is fully prepared for the new pensions freedoms.
“We’ve worked incredibly hard to make sure we can deal with additional demand to access drawdown. We’ve a unique understanding of the demands of advisers and drawdown customers based on more than 10 years’ experience of managing SIPP investments and supporting more clients in drawdown than any other provider.
“The impact of the pension freedoms goes well beyond provider and adviser operational readiness. This legislation will transform the UK long-term savings market. Instead of being seen as inaccessible and opaque, pensions are about to become consumers’ long-term savings vehicle of choice.”