The provider’s investment director said the new pricing structure was in response to pension reforms announced in the Budget that will create new retirement flexibility, and claimed the changes would “help advisers and customers navigate the widening range of retirement options”.
The One Retirement product, which lets investors build their savings and take an income in the same place, will now have a single yearly product charge of 0.3 per cent for all assets under £250,000. The charge falls to zero on assets of more than £250,000, creating an effective charge cap of £750.
Aegon UK has also reduced minimum investment amounts to £200 for regular monthly premiums and £2,000 for single and transfer premiums. The changes take effect on 3 May.
Meanwhile, investors on the ARC platform will benefit from no platform fee on assets of £250,000 and above, capping the total annual platform charge at £1,215.
Aegon UK is also reducing the minimum investment for drawdown from £50,000 to £20,000.
Mr Dixon added that the changes were “especially rewarding for customers who want to consolidate their pension assets”.
Adviser view
Mark Polson, principal of Edinburgh-based consultancy The Lang Cat, said: “The exact amount of Aegon’s price cap doesn’t matter so much. What does matter is that a provider has finally said ‘enough is enough’ in terms of charges and been grown up enough to set a top limit.”
