Axa Wealth has announced today (26 November) that it will remove regular charges on its Pension Investment Account and drawdown services available via the Elevate platform.
Charges will be removed for all new and existing customers from January 2015, as part of Axa’s response to the Budget reforms and subsequent changing pensions landscape.
The current regular annual charges on Axa Wealth’s Elevate platform are £12 per quarter for the Pension Investment Account and £20 per quarter for drawdown services.
David Thompson, managing director of business development and proposition, Axa Wealth, said: “The changes introduced at the Budget have altered the pensions landscape dramatically. But despite the changes, advisers and their clients still fundamentally want to keep control over and grow their investments and generate a dependable income in retirement.
“Removing these charges from January will help advisers and their clients take advantage of the flexibility offered by the new pension rules. It also forms part of our focus on transparency, simplicity and clarity in our charges to make investing easier for all.”
He added that Axa expects the pension changes coming into force in the next financial year to “accelerate flows” onto platforms.
Mr Thompson said: “Platforms allow for wealth to be spread easily over multiple tax wrappers, offering flexible ways of retrieving income and a place to store and invest money.
“As part of our response to the pension changes we are also set to launch a new flexible drawdown service via the Elevate platform, which will form part of the online income options we already provide through the Elevate Pension Investment Account.”
In July this year, Aviva scrapped its drawdown charges following the Budget announcement. Old Mutual Wealth followed suit in October this year scrapping its drawdown fee and minimum investment charge.
ruth.gillbe@ft.com
