Skandia’s Collective Retirement Account flexible drawdown facility will now accept transfers from other pension schemes.
The change opens up the field for those wanting to use a different provider for their drawdown.
Historically, many have typically used a Sipp provider for their flexible drawdown, and the move from Skandia provides another option for those wanting to review their costs.
These can include fees at various stages of the life of the drawdown, such as costs for setting up the facility or moving into a capped fund.
Skandia said its Collective Retirement Account was more cost-effective for investors as it charged £57.20 a year for drawdown.
It added that investors who used drawdown through a Sipp might not be making the best use of all the Sipp functions.
Adrian Walker, retirement planning manager of Skandia said: “As the flexible drawdown market has developed, alternative fee structures have become available which should inform the advice review process for any client with such investments. Delivering a cost- effective solution will mean that clients can benefit from lower on-going charges on pension savings.”